FCA doubles its remit in 2014

The Financial Conduct Authority is expecting a significant rise in the number of regulated firms next year as it takes over from the Office of Fair Trading as watchdog of the consumer credit market next year.

FCA doubles its remit in 2014


By the end of November, the regulator said 31,139 consumer credit firms had registered for interim permission – more than the total number of firms currently registered with the FCA, which sits at roughly 27,000.

Firms registering for interim permission before December received an ‘early bird’ discount but the final deadline is 1 April 2014 – the date it takes over.

Interim permission allows a firm to continue to offer consumer credit services until it is required to apply for full authorisation, or review the activity it undertakes. It costs £150 for a sole trader and £350 for most firms.

Authorisation fees will be tiered, based on the income a business generates from its credit activities, ensuring the smallest firms pay the lowest fees. Those firms that had paid for a consumer credit license from the OFT will be eligible for a rebate, which will be administered by the FCA.

Apply sooner rather than later

Leslie Titcomb, chief operating officer at the FCA said while the deadline was not until next April, she was urging firms to submit their applications sooner rather than later.

“Over 31,000 firms have already registered for interim permission placing us well ahead of schedule as we move closer to 1 April, when the FCA takes over the regulation of consumer credit.

“To put that into perspective, there are 27,000 firms currently supervised by the FCA. This has been a significant challenge so we have made a huge effort to work with industry so firms are aware of the forthcoming changes,” she added.



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