On 26 June 2015 the Solicitors Regulation Authority (SRA) published a consultation paper setting out new proposals for the regulation of solicitors carrying out consumer credit work. The paper follows from a consultation in October 2014 between the FCA and the SRA which concluded that Part 20 of the Financial Services and Markets Act 2000 (FSMA) – exempting SRA approved firms from the requirement to be authorised by the FCA to carry out FSMA regulated activities – will be retained in some capacity.
As a result, the consultation paper proposes new regulatory requirements governing those activities that the SRA considers should remain with it, as well as its proposals for those activities for which it suggests FCA authorisation should be required. The proposals would allow solicitors to carry out certain consumer credit activities, so long as they are central to the legal services they provide.
Responses are requested by 7 August 2015. The SRA expects to present final recommendations on the regulatory approach to its board at its meeting in September 2015.