The Financial Services and Markets Act 2000 (Consumer Credit) (Transitional Provisions) Order 2013 has been published along with an accompanying explanatory memorandum. The Order was made on 9 December 2013 and will come into force on 31 December 2013.
The Order gives the FCA powers to establish a scheme to make payments to OFT consumer credit licensees. This follows the Government’s decision that these licensees should be reimbursed in respect of the portion of their OFT licence fee that relates to the period after 31 March 2014 up until the end of the licence period or the due date for the next maintenance fee payment.
HM Treasury has also updated its webpage on the transfer of consumer credit regulation to announce that the FCA will e-mail most OFT licensees about the scheme “in the coming weeks” and will issue the first cheques by the end of 2013. The Order also gives the FCA information-gathering powers, which although will expire on 1 April 2014, will allow the FCA to gather information before it takes over consumer credit regulation.