Regulation of consumer credit activities

Are you carrying on the activity by way of business?

Does the activity relate to an exempt consumer credit agreement or hire agreement?

See article 60B and 60C to 60H of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 for further detail.

Is the activity excluded by the "contentious business" exclusions?

Certain consumer credit activities, such as debt collecting, will be excluded from regulation under FSMA where those activities are undertaken by solicitors (or other persons authorised under the Legal Services Act 2007) in the course of providing advocacy services or litigation services. The definition of these services is wider than the previous definition of "contentious business" and therefore would include pre-issue work. See the Financial Services and Markets Act 2000 (Miscellaneous Provisions) Order 2015 for further information.

Your activity is not a regulated consumer credit activity.

Is the activity a prohibited activity or do restrictons apply?

See the SRA Financial Services (Scope) Rules 2011.

Are the services being provided in an "incidental manner"?

Are you providing a particular professional service to a particular client, the regulated activities arise out of, or are complementary to, that service?

You need to be dually authorised by the SRA and FCA.

See the FCA website for more information.

You will need to comply with the FCA's CONC and cannot rely on Part 20 for other regulated activities

Part 20 exemption applies.

Comply with the SRA Principles, Code, SRA Financial Services (Conduct Of Business) Rules and refer to formal guidance.