On February 18, 2016, the FCA issued a Call for Input on the retained provisions of the CCA. Responsibility for regulating consumer credit markets was transferred to the FCA in April 2014. As part of this transfer, some of the provisions of the Consumer Credit Act 1974 were repealed and replaced by FCA rules. The FCA is now required to undertake a review on the remaining provisions in the Consumer Credit Act. The aim of the review is to simplify the regime and provide appropriate protection for consumers without burdening firms disproportionately. The FCA is seeking input on three key areas: (i) whether any specific retained provisions should be prioritized for review; (ii) the timeline of the review; and (iii) the manner in which the review should be undertaken. Responses to the Call for Input are due by May 18, 2016. The FCA is expected to establish a stakeholder’s consultative group and to finalize the scope of the review in the next few months. The regulator will publish an update on progress in the fourth quarter of 2016. The FCA is required to report its recommendations to the Treasury by April 1, 2019. The report could outline legislative change and whether repealing any of the retained provisions in the CCA could have an adverse effect on the appropriate level of consumer protection. The report must also consider whether any of the retained provisions of the CCA could be replaced by FCA rules. In making the review, the FCA must have regard to the principle that a burden imposed in relation to the carrying on of an activity, should be proportionate to the benefits.
The Call for Input is available at: http://www.fca.org.uk/static/documents/call-for-input-review-retained-provisions-consumercredit-act.pdf.