News release

Consumer credit toolkit helps firms with compliance

We have published a consumer credit toolkit to help firms ensure the services they deliver are compliant with the new regulatory regime.

We are introducing a new approach for law firm regulation so that the majority of practices should not have to be regulated by both ourselves and the Financial Conduct Authority (FCA). This will reduce the burden on firms while ensuring client protections are in place.

The new approach, which comes into effect on 1 April, allows us to carry out consumer credit regulation for firms if their work is an integral part of the legal services being provided. Some firms might still need to be regulated by the FCA, so all practices need to check if they need to apply for dual regulation.

The toolkit will help firms work through this complex and technical issue and identify what the regulatory requirements are for them. The toolkit can be found here:

Go to the toolkit:

Crispin Passmore, SRA Executive Director for Policy, said: "We have worked closely with the FCA to produce this new regime that offers a balanced and proportionate approach to regulation. We hope the toolkit will help firms understand the regulatory requirements and what they mean for them.

"We now need all law firms that carry out any kind of consumer credit work to consider whether the services they provide are covered by our regulatory arrangements. If not, they will need to apply to the FCA for regulation before transitional arrangements end in the spring."

We worked with the FCA for more than a year to design the best way of regulating consumer credit activities, aiming to keep to a minimum the level of regulation and number of regulators firms have to deal with. We consulted on its proposals for consumer credit regulation between 26 June and 7 August 2015. The consultation can be viewed here:

Go to the consultation

 
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