SRA consumer credit proposals pass next hurdle
The Solicitors Regulation Authority’s (SRA) proposed regime for consumer credit regulation has passed its latest hurdle.
The Financial Conduct Authority has approved the changes to the SRA’s rules that will allow solicitors to carry out certain consumer credit activities under SRA authorisation where those activities are central to the legal services provided.
The SRA have been working with the FCA over the last year to agree the best way to regulate consumer credit activities, aiming to keep to a minimum the level of regulation and number of regulators firms have to deal with.
The new approach would mean the majority of firms will not have to be regulated by both the SRA and the FCA, reducing the burden on them while client protections remain in place. The proposal now needs final approval from the Legal Services Board.
If the LSB agrees, the relevant changes to the SRA Handbook will come into effect on 1 April 2016.