The Financial Services and Markets Act 2000 (Consumer Credit) (Miscellaneous Provisions) (No 2) Order 2014 has been published along with an explanatory memorandum.
The Order makes miscellaneous provisions relating to the transfer of consumer credit regulation from the OFT to the FCA, including amendments to:
- the Financial Services and Markets Act 2000 (Exemption) Order 2001 to exempt a charity from the need for authorisation under the Financial Services and Markets Act 2000 (FSMA) where it operates an electronic system in relation to lending and the lender receives no income or return other than the repayment of capital. It also exempts persons who have rights under a regulated credit agreement or a regulated consumer hire agreement, provided that the agreement is administered by a person authorised by the FCA;
- the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 concerning local authorities and insolvency practitioners to align the application of the financial promotion restriction with exclusions from the requirement for authorisation under FSMA to carry on a regulated activity;
- the Money Laundering Regulations 2007 (MLRs) to align the application of the MLRs to local authorities with the exclusions for local authorities from the requirement for authorisation under FSMA to carry on a regulated activity;
- the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No 2) Order 2013 to impose the requirements of article 21 of the Consumer Credit Directive on certain persons who undertake credit broking but are excluded from the requirement for authorisation under FSMA; and
- the Consumer Credit Act 1974 (CCA) to preserve the application of section 126 of the CCA to residential and buy-to-let mortgages.
The Order also makes transitional provisions for complaints about the OFT’s functions under the CCA.
The Order was made on 5 March 2014 and comes into force on 30 March 2014 and 1 April 2014.