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Update on consumer credit
Jenny Driscoll and David Blocksidge
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Update
April 2014 – We took over regulation of firms
- ffering credit, loans and debt services
- Action we have taken, so far
- Carrying out a smooth transition
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Jenny Driscoll and David Blocksidge 1 Update April 2014 We took - - PowerPoint PPT Presentation
Jenny Driscoll and David Blocksidge 1 Update April 2014 We took - - PowerPoint PPT Presentation
Update on consumer credit Jenny Driscoll and David Blocksidge 1 Update April 2014 We took over regulation of firms offering credit, loans and debt services Action we have taken, so far Carrying out a smooth transition 2
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Progress since taking over regulation
- Published rules
- Published new research
- Firms action
- Price cap consultation
- Thematic reviews
- Announced credit card market study
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Reminding firms of our expectations
- FCA people speak regularly at events
throughout the country
- Events, including roadshows and
webinars
- Supervision Division
- Robust application process
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The journey for firms
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OFT regulation FCA interim permission FCA application FCA authorisation
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A smooth transition
- We will invite around 50,000 firms to
apply for authorisation
- Three month application periods began
- n 1 October
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A smooth transition
- Firms have been informed when to apply
- We are helping firms prepare
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- All authorised firms will appear on our register
- Our enforcement team will seek out firms that
carry on credit business without permission
Ensuring a level-playing field
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- Price cap consultation
- Credit card market study
- Consultation paper
- Cap comes into force – 2 January 2015
- Publish thematic review reports
What’s coming up
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The debt management sector
Key areas that we will look at in the debt management sector include:
- fees and charges
- use of third parties, such as lead generators
- the provision of suitable, affordable and
sustainable debt management solutions
- financial incentives for staff
- Competence
- Protection of client money
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The high-cost short-term sector
Key areas that we will look at in the high- cost short-term credit sector include:
- Default rates
- Rollovers and re-lending rates
- Evidence of carrying out effective
affordability checks
- How companies treat customers who
have difficulty in repaying
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Our approach
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FCA approach
Gateway is key High minimum standards Getting inside the business Flexible for different size firms
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More on our approach
- Limited and full permission
- Application periods
- Approved persons
- Controllers
- Supervision
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Not for profit firms
- ‘Grandfathering’ - Not For Profit bodies
who were members of a group licence, such as AdviceUK’s (and had opted in), immediately before 1st April 2014 are to be treated for all purposes as having Authorisation to carry on
– Debt adjusting – Debt-counselling – Providing credit information services
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New applicants - information to be supplied at application
- Threshold Conditions that will apply to
new entrant NFPs
– Location of Offices – Effective Supervision – Appropriate Resources – Suitability
- FCA Contact Centre for queries – 0845
606 9966
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Ongoing requirements
- NFPs will need to show that they remain
compliant with threshold conditions; and
- Reporting requirements
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Any questions?
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