CONC TP 1 Transitional provisions: introduction to TP2

1Application

1.1

R

These transitional provisions apply to:

(a)

a firm which has a Part 4A permission for a credit-related regulated activity;

(b)

a firm which is treated as having a Part 4A permission or a variation of permission for a credit-related regulated activity by virtue of article 56 of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment)(No 2) Order 2013; and

(c)

an incoming firm which carries on a credit-related regulated activity.

Purpose

1.2

G

The FCA is aware that the introduction of CONC will impose an additional compliance burden on firms, even when there is an underlying continuity of policy. The FCA wishes to lighten that burden in a manner consistent with its regulatory objectives and the principles of good regulation under the Act. The following rules give firms additional time after 1 April 2014 to complete their preparations for the impact of certain provisions in CONC.

Definitions

1.3

R

In these transitional provisions the following words are to have the meaning given to them below:

"corresponding rule" means a provision or guidance set out, as they stand on 31 March 2014, in:

the guidance issued by the Office of Fair Trading entitled "Debt collection: OFT guidance for businesses engaged in the recovery of consumer credit debts" (OFT664rev2);

the guidance issued by the Office of Fair Trading entitled "Irresponsible lending: OFT guidance for creditors" (OFT1107);

the guidance issued by the Office of Fair Trading entitled "Debt management (and credit repair services) guidance" (OFT366rev);

the guidance issued by the Office of Fair Trading entitled "Credit brokers and intermediaries: OFT guidance for brokers, intermediaries and the consumer credit and hire businesses which employ or use their services" (OFT1388);

the guidance issued by the Office of Fair Trading entitled "Mental capacity: OFT guidance for creditors" (OFT1373);

the guidance issued by the Office of Fair Trading entitled "Guidance on sections 77, 78 and 79 of the Consumer Credit Act 1974: the duty to give information to debtors and the consequences of non-compliance on the enforceability of the agreement" (OFT1272);

the guidance issued by the Office of Fair Trading entitled "Second charge lending - OFT guidance for lenders and brokers" (OFT1105);

Part 4 of the CCA, including as applied by section 151 of the CCA;

sections 55A, 55B, 74A, 74B, 81, 82A, 115 and 160A of the CCA;

The Consumer Credit (Conduct of Business) (Credit References) Regulations 1977 (S.I. 1977/330);

The Consumer Credit (Payments Arising on Death) Regulations 1983 (S.I. 1983/1554);

The Consumer Credit (Conduct of Business) (Pawn Records) Regulations 1983 (S.I. 1983/1565);

The Consumer Credit (Content of Quotations) and Consumer Credit (Advertisements)(Amendments) Regulations 1999 (S.I. 1999/2725);

The Electronic Commerce (EC Directive) Regulations 2002 (S.I. 2002/2013);

The Financial Services (Distance Marketing) Regulations 2004 (S.I. 2004/2095);

the Consumer Credit (Advertisements) Regulations 2004 (S.I. 2004/1484) and 2010 (S.I. 2010/1970);

that is substantially similar in purpose and effect to the relevant provision in CONC.

a "credit firm" means a firm which has or is treated as having a Part 4A permission for a credit-related regulated activity;

an "EEA credit firm" means an incoming firm which carries on a credit-related regulated activity;

"transitional period" means the period starting on 1 April 2014 and finishing at midnight at the end of 30 September 2014.