The FCA has published a webpage for consumer credit firms about limitations on debt permissions.
The webpage notes that some firms with the ‘no debt management’ limitation may be carrying out debt management activities and that the limitation they hold is not appropriate for their business.
The webpage also notes that rather than the ‘no debt management’ limitation, there are six new standard limitations that may be relevant to firms.
The FCA states that firms should take the following action:
- check their permissions on the Financial Services Register;
- check whether the limitations remain appropriate for the business conducted; and
- if the limitations need to be changed, email VOPLimitations@fca.org.uk with details of the changes required.
The FCA also explains the changes needed within a firm’s business if it needs to change its limitation. In particular, the FCA explains that if a firm determines that it is a ‘debt management firm’ and asks to change a limitation held, it will need someone within the business to hold the compliance oversight function (CF10). In addition, chapter 10 of the FCA’s Consumer Credit sourcebook outlines the minimum capital requirements that debt management firms must hold.
View FCA webpage on limitations on debt permissions, 20 March 2017