SRA – Latest version of the Handbook includes consumer credit changes
Issue Date: 04 April 2014
Latest version of the Handbook includes consumer credit changes
Version 9 of the SRA Handbook which came into effect on 1 April is available on the SRA website.
One of the key amendments is the change to the SRA Financial Services (Scope) Rules as a result of the transfer of the regulation of consumer credit activities to the Financial Conduct Authority (FCA).
The transfer of regulation from the Office of Fair Trading (OFT) to the FCA took effect on 1 April 2014.
As previously announced, with the transfer of regulation, firms need to consider whether they meet the criteria set out in Part 20 of the Financial Services and Markets Act 2000 (sections 327 and 332(4)) (FiSMA) and are therefore exempt from FCA authorisation. Where the criteria are not met, firms need to apply to the FCA for interim permission, or cease to carry on consumer credit activities.
Firms should already be familiar with the Part 20 regime in relation to financial services, but this will now also be relevant to consumer credit activities. Firms now carrying on consumer credit activities without interim permission from the FCA or falling within the Part 20 exemption will be in breach of FCA regulations.
The SRA has already produced guidance for firms, with updated guidance due to be released in the coming weeks. We will continue to update its advice as and when it receives information from the FCA.
The SRA guidance can be found here: http://www.sra.org.uk/solicitors/handbook/finserscope/resources.page
Other changes to the Handbook are:
• The SRA Higher Rights of Audience Regulations 2011 have been amended to exempt the Intellectual Property Enterprise Court from their scope, meaning solicitors do not have to hold the Higher Rights qualification in order to appear in hearings at this court
• A change to implementation dates in the SRA Quality Assurance Scheme for Advocates (Crime) Regulations 2013.
The Handbook can be found at www.sra.org.uk/handbook