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Consumer credit firms’ switch to FCA regulation gathers pace

Some 85 per cent of consumer credit firms have registered for interim permission with the FCA ahead of the 1 April deadline.

In an update published today, the regulator says 43,751 firms of an estimated 51,528 in the consumer credit space have now registered with it for interim permission. Of these, around 8,165 are financial advisers. 

Consumer credit regulation is to transfer from the Office of Fair Trading to the FCA in April.

Any firm with an OFT consumer credit licence that plans to continue providing credit to customers after 31 March must register for interim permission before 1 April. The FCA says firms which continue to offer credit to customers without interim permission could be acting illegally.

Firms will be invited to apply for full authorisation from October.

In December the FCA revised charges for consumer credit licences, reducing the minimum charge for full authorisation from £1,000 to £600.

Last month the FCA began to send rebates to advisers who had already paid for “indefinite” consumer credit licences with the OFT.

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