I am FCA authorised, what should I do?

Our arrangements after 1 April 2014 will only apply to firms undertaking the same range of activities as currently permitted under the group licence. These will be under Part XX of the Financial Services and Markets Act 2000 and will be known as the Consumer Credit (Transitional Arrangements) Regulations. Also, the activities must be ‘incidental’ to the professional services supplied to a client; they cannot be the only service supplied to a client.

Originally we understood that as an FCA authorised firm, you cannot be part of our transitional arrangements, even if you are supplying consumer credit services as set out above. You are required to have the appropriate permissions for consumer credit to be added to your existing FCA permissions. However, by virtue of a statutory instrument a firm that before 1 April held an OFT standard licence and after that date has an interim permission to undertake credit-related regulated activities will be able to use the transitional arrangements for other exempt regulated activities as set out in the Institute’s Consumer Credit (Transitional Arrangements) Regulations. This permission will end when the firm is notified by the FCA that it has ‘full’ permission. At that point if the firm wishes to continue to undertake such activities (after receiving full FCA permission for certain activities) the firm should apply to the FCA for permission to undertake such other credit-related regulated activities. Firms who are in this position should consider if they wish to:

• Withdraw from FCA interim permission for undertaking credit-related regulated activities and undertake such of those activities that are permitted under the Institute’s transitional arrangements for consumer credit and continue with the other DPB activities that they undertake.
• Seek additional authorisation now from the FCA to undertake those regulated activities that were undertaken under the Institute’s transitional arrangements.