On 18 February 2016, the FCA published a Call for Input on the planning phase of its review of the retained provisions of the Consumer Credit Act 1974 (CCA). The review will consider whether particular CCA provisions remain appropriate, or should be modified, updated or replaced by FCA rules in order to maintain the right degree of consumer protection.
When the FCA took over responsibility for regulating consumer credit in April 2014, some provisions of the CCA were repealed, some were replaced by FCA rules and others were retained. Under the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014, the FCA is required to review the remaining CCA provisions and report to HM Treasury by 1 April 2019.
The Call for Input seeks initial views from stakeholders on:
- Whether to prioritise particular provisions for review.
- Timescales for review (and if certain provisions should be considered earlier).
- The conduct of the review, including engagement with stakeholders.
The FCA is likely to prioritise those provisions which: 1) provide particular benefits to consumers; 2) are particularly burdensome on firms without commensurate benefit; or 3) are particularly complex.
The Call for Input closes on 18 May 2016. The FCA will finalise the scope of the review in light of responses and publish an update on progress by Q4 2016.