Updated: added update to final outcome on consumer credit statutory instruments
Background
Transferring responsibility for the regulation of consumer credit from the OFT to the new FCA in April 2014.
The consultation document sets out the high-level regulatory model and approach for regulation of the consumer credit market under the FCA, and also describes the secondary legislation the government proposes to make to underpin the transfer.
The government firmly believes that the FCA will be better equipped to tackle the consumer detriment and malpractice that has taken place under the current regime with stronger powers and resources to protect consumers and promote effective competition in the consumer credit market. It will be able to respond more quickly and flexibly to market changes, ensuring that regulation can keep pace with this diverse and innovative market. The transfer will therefore mean a fundamentally new approach to regulating consumer credit, ensuring that irresponsible firms and bad practice will have no place in the consumer credit marketplace.
