The Financial Conduct Authority (FCA) has agreed to a request from the Solicitors Regulation Authority (SRA) for another extension to the transitional arrangements for regulation of consumer credit activities.

The extension has been requested so that the SRA can have more time to plan the best way forward for regulating law firms that carry out consumer credit work.

The agreement by the FCA means that the transitional period, previously due to end on 1 April 2015, will now run until 31 October 2015.

Enid Rowlands, Chair of the SRA Board, said:

“We are committed to finding the best possible solution for law firms and the users of legal services. Moving responsibility for consumer credit regulation from the OFT to the FCA is an opportunity to review how oversight of the work of law firms engaged in various forms of consumer credit activity should be delivered.

“We have had open, constructive and positive discussions with the FCA about how our differing models of regulation can work together to provide proportionate and effective protection. However, this is a complex and important area and we felt more time was needed to allow the options to be properly and thoroughly explored. The FCA has agreed, and we will continue to work closely with them.

“We will keep firms up to date with any changes that may affect them as and when we know.”