The OFT has updated its web page on changes to the consumer credit licensing regime to include information on high and low risk consumer credit licence applications.
The web page states that:
- if an application for a licence in a high risk category is received by the OFT before 31 March 2014, the OFT will process the application, from the date of receipt, as far as possible, before 1 April 2014, when responsibility for consumer credit regulation transfers to the FCA. If the OFT is unable to process an application to completion, it will pass it to the FCA. The FCA will then assess the application in line with its authorisation regime. FCA fees will vary depending on the nature of the business. The FCA will confirm the application fees for consumer credit firms in a Policy Statement which is expected in March 2014; and
- the OFT still has time to process low risk licence applications before the transfer to the FCA, since 90% of such applications are processed within 25 working days. However, it is likely that low risk applications submitted to the OFT after 21 February 2014 will transfer to the FCA. If the OFT does not make a decision on an application by 31 March 2014, the application will be transferred to the FCA. The FCA will then carry out its own assessment of the application and decide whether or not to authorise the applicant. If a decision on an application is made by the OFT before the 31 March 2014, the firm will also need to register with the FCA for interim permission.
View Consumer credit changes, 7 February 2014