Related provisions for CONC 4.7.1
1 - 20 of 28 items.
(1) CONC 4.5.2 G applies to a firm with respect to consumer credit lending.(2) CONC 4.5.3 R and CONC 4.5.4 R apply to a firm with respect to credit broking in relation to:(a) regulated credit agreements; and(b) regulated consumer hire agreements.(3) CONC 4.5.3 R and CONC 4.5.4 R also apply to a firm carrying on the activities specified in article 36A(1)(a) or(c) of the Regulated Activities Order in relation to:(a) credit agreements that would be regulated credit agreements but
A credit broker must disclose to a customer in good time before a credit agreement or a consumer hire agreement is entered into, the existence of any commission or fee or other remuneration payable to the credit broker by the lender or owner or a third party in relation to a credit agreement or a consumer hire agreement, where knowledge of the existence or amount of the commission could actually or potentially:(1) affect the impartiality of the credit broker in recommending a
At the request of the customer, a credit broker must disclose to the customer, in good time before a regulated credit agreement or a regulated consumer hire agreement is entered into, the amount (or if the precise amount is not known, the likely amount) of any commission or fee or other remuneration payable to the credit broker by the lender or owner or a third party.[Note: paragraph 3.7i (box) of CBG]
(1) Not later than the lender ("L") informs a credit broker that L is not willing to make a regulated credit agreement, L must, unless L informs the customer directly that L is not willing to make the agreement, inform the credit broker of the name and address (including an appropriate e-mail address) of any credit reference agency from which L has, during the negotiations relating to the proposed agreement, applied for information about the financial standing of the customer.
(1) Before entering into a regulated credit agreement or regulated consumer hire agreement, or before a P2P agreement is entered into, under which the customer may grant a continuous payment authority, the firm must provide the customer with an adequate explanation of the matters in (2).(2) The matters referred to in (1) are:(a) what a continuous payment authority is and how it works;(b) how the continuous payment authority will be applied by the firm, including where the firm
(1) A firm may provide credit card cheques only to a customer who has asked for them.[Note: section 51A(2) of CCA](2) A firm may provide credit card cheques only on a single occasion in respect of each request that is made.[Note: section 51A(3) of CCA](3) The number of credit card cheques provided in respect of a request must not exceed three (or, if less, the number requested).[Note: section 51A(4) of CCA](4) Where a single request is made for the provision of credit card cheques
8GEN 4.3.1 R (Disclosure in letters to retail clients) does not apply to a credit firm (other than a firm with a limited permission) with respect to the activity of entering into a regulated credit agreement as lender to which the Consumer Credit Directive applies, to the extent it would be contrary to the United Kingdom's obligations under an EU instrument.
8A credit firm which carries on the activity of entering into a regulated credit agreement as lender , in respect of an agreement 9to which articles 5 and 6 of the Consumer Credit Directive apply is under an obligation to disclose pre-contract information in the form and to the extent required by the Consumer Credit (Disclosure of Information) Regulations 2010 (SI 2010/1013)9. Firms which carry on credit broking may take on the same obligation. A credit firm must also ensure specified
12This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) accepting deposits; (2) dealing in investments as agent;(3) arranging (bringing about) deals in investments;(4) making arrangements with a view to transactions in investments;(5) arranging (bringing about) regulated mortgage contracts;(6) making arrangements with a view to regulated mortgage contracts;(7) arranging (bringing about) a home reversion plan;(8) making arrangements with
(1) 12Subject to (2) and (3), the exclusions apply, in relation to any activity carried on by a local authority.(2) The exclusion relating to the regulated activities of:(a) dealing in investments as agents;(b) arranging (bringing about) deals in investments;(c) making arrangements with a view to transactions in investments;(d) assisting in the administration and performance of a contract of insurance; and(e) advising on investments;applies to any activity carried on by a local
15A credit agreement is an exempt agreement17 in the following cases:(1) if it is a regulated mortgage contract or a home purchase plan;(2) if: (a) the lender provides the borrower with credit exceeding £25,000; and(b) the agreement is entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower;(3) if: (a) the lender provides the borrower with credit of £25,000 or less; and(b) the agreement is entered
Entering into as lender, and administering, a regulated mortgage contract are regulated activities under article 61 of the Regulated Activities Order (Regulated mortgage contracts). Guidance on these regulated activities is in PERG 4.7 (Entering into a regulated mortgage contract) and PERG 4.8 (Administering a regulated mortgage contract).
(1) 15Under sections 20(1) and (1A) of the Act (Authorised persons acting without permission), if an authorised person carries on a regulated activity in the United Kingdom, or purports to do so, otherwise than in accordance with his permission, he is to be taken to have contravened a requirement imposed by the FCA (in the case of a FCA-authorised person) or the FCA and the PRA (in the case of a PRA-authorised person).(2) In addition, under section 23(1A) of the Act (Contravention
(1) The Appointed Representatives Regulations are made by the Treasury under section 39(1)), (1C) and (1E)15 of the Act. These regulations describe, among other things, the business for which an appointed representative may be exempt or to which sections 20(1) and (1A) and 23(1A) of the Act may not apply15, which is business which comprises any of:(a) dealing in investments as agent (article 21 of the Regulated Activities Order) where the transaction relates to a pure protection
But the exclusion applies only if the principal purpose of the publication or service is not:(1) to advise on securities or relevant investments or home finance transactions1: or1(2) to lead or enable persons:(a) to buy, sell, subscribe for or underwrite securities or relevant investments; or1(b) to enter as borrower into regulated mortgage contracts, or vary the terms of regulated mortgage contracts entered into by them 1as borrower on or after 31 October 2004; or111(c) 1to
The exclusion applies only if the principal purpose of the publication or service is not:(1) to give advice on securities, relevant investments or home finance transactions1(see PERG 7.3.1 G); or1(2) to lead or enable persons to:(a) buy, sell, subscribe for or underwrite securities or relevant investments; or(b) to enter as borrower into regulated mortgage contracts, or vary the terms of regulated mortgage contracts entered into by them 1 as borrower on or after 31 October 2004;
9Activities carried on by an EEA authorised payment institution or an EEA authorised electronic money institution exercising passport rights in the United Kingdom in accordance with article 16(3) of the Payment Services Directive (in the latter case, as applied by article 6 of the Electronic Money Directive) are excluded from the regulated activities of entering into a regulated credit agreement as lender and exercising, or having the right to exercise, the lender's rights and
(1) 9The exclusion for electronic commerce activities by an incoming ECA provider (see PERG 2.9.18 G) applies to entering into a regulated credit agreement as lender and exercising, or having the right to exercise, the lender's rights and duties under a regulated credit agreement.(2) There is also an exclusion from entering into a regulated credit agreement as lender and exercising, or having the right to exercise, the lender's rights and duties under a regulated credit agreement
4Guide to potential application of MCOB 3 and CONC 3 to financial promotion of credit. This table belongs to PERG 8.17.20 G.
Subject of promotion |
MCOB 3 may apply |
CONC 3 may apply |
|
(1) |
Yes |
No |
|
(2) |
credit agreements secured on land where the lender also enters into regulated mortgage contracts as lender |
Yes |
No |
(3) |
credit agreements not secured on land, whether or not the lender also enters into regulated mortgage contracts as lender |
No |
Yes |
(4) |
credit agreements secured on land where the lender does not enter into regulated mortgage contracts as lender |
No |
Yes |
(5) |
credit agreements partly secured on land that include some unsecured credit and where the lender enters into regulated mortgage contracts as lender |
Yes |
No |
(6) |
credit agreements with features as in (1), (2) or (5) promoted in combination with other unsecured credit agreements |
Yes |
Yes |
Under section 23 of the Act (Contravention of the general prohibition or section 20 (1) or (1A)5), a person commits a criminal offence if he carries on activities in breach of the general prohibition in section 19 of the Act (The general prohibition) . An authorised person also commits a criminal offence if he carries on a credit-related regulated activity in the UK, or purports to do so, otherwise than in accordance with his permission (unless the person is an appointed representative
Application of different sections of SUP 16 (excluding SUP 16.13, SUP 16.15, SUP 16.16 and SUP 16.17)6627
The credit-related regulated activities comprise consumer credit lending, credit broking, debt counselling, debt adjusting, debt administration, debt collecting, providing credit information services, providing credit references, operating an electronic system in relation to lending (but, other than in FEES and SUP, only insofar as it relates to a borrower or prospective borrower under a P2P agreement)1 and consumer hiring.
(1) 2The FCAthreshold conditions apply to a person that carries on, or seeks to carry on, only relevant credit activities (within paragraph 2G of Schedule 6 to the Act) and which therefore has, or is applying for, limited permission with a number of modifications (see article 10(19) of the Regulated Activities Amendment Order). Regulated activities a person carries on in relation to which sections 20(1) and (1A) and 23(1A) of the Act do not apply as a result of section 39(1D)