Regulatory litigation law watch email
Consumer credit firms are preparing for the Financial Conduct Authority ("FCA") to take over regulation of the industry from the Office of Fair Trading ("OFT") in 2014.
More than 50,000 firms which currently hold OFT consumer credit licences will come under the auspices of the FCA as of 1 April 2014.
All firms will need to assess how the new rules will impact their business. Those that have not previously been regulated by the FCA will face the additional challenge of adapting their systems to a new, more proactive, principles-based style of regulation.
The key changes:
* Individual accountability of key personnel
* Dedicated supervision and enforcement teams will mean tougher, more proactive regulation
* Increased reporting obligations
* Tougher regulation of the payday loan industry
* Capital requirements for debt management firms
The FCA has published a further consultation paper (FCA CP13/10) and asked for comments on the detail of the proposals by 3 December 2013.
View our law watch email for a summary of the key points.