Detail of outcome
The government published a consultation on 6 March 2013 which set out the policy and legislative detail underpinning the new regulatory framework for consumer credit under the FCA. The government received almost one hundred responses to the consultation, from a wide range of interested parties. On 25 June 2013, the key secondary legislation to enable the transfer was laid before Parliament, along with a final impact assessment. Further statutory instruments were published over the subsequent months to help deliver the new regime.
Detail of feedback received
The government received almost one hundred responses to the consultation, from a wide range of interested parties from debt advice charities to large banks.
This consultation ran from to
Transferring responsibility for the regulation of consumer credit from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA)
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.