In 2014, the Government fundamentally reformed the consumer credit market, by transferring regulation from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA). This more robust regulatory system is helping to deliver the Government’s vision for a well-functioning and sustainable consumer credit market which is able to meet consumers’ needs.
As part of the transfer, the FCA was required in regulation 20 of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 to undertake a review of the “retained provisions” of the Consumer Credit Act 1974.
In February 2016 the FCA published a Call for Input setting out its approach and seeking responses from stakeholders. In August 2018, the FCA published an interim report, which set out initial views and invited feedback. The FCA has now completed this review, and the Treasury has laid the final report before Parliament. Copies of the document are available in the Vote Office and the Printed Paper Office.
The Government welcome the FCA’s report, and the significant analysis undertaken by the FCA during the course of the review. The Government will consider the report and whether further reform of the consumer credit regulatory regime is needed.