Following discussions with the FCA, the Solicitors Regulation Authority (SRA) has announced that it has secured agreement to extend the transitional provisions for consumer credit up until 31 March 2016. During the transitional period, firms carrying on credit-related regulated activities will be required to comply with the guidance and other provisions listed in the transitional provisions in the FCA’s CONC.
The announcement follows the publication of a consultation paper on 26 June 2015 which set out new proposals for the regulation of consumer credit activities carried on by SRA-authorised individuals and firms under Part 20 of the Financial Services and Markets Act 2000 (FSMA). Under Part 20 members of a designated professional body, such as the SRA, are exempt from requirement to be authorised by the FCA in order to carry out FSMA regulated activities. Part 20 also requires the SRA to make rules governing the provision of consumer credit activities, that must be approved by the FCA and Legal Services Board. These rules must be in place by the time the current transitional provisions expire.