The Finance & Leasing Association
(FLA) has called a proposal to transfer consumer credit regulation
in the UK to the Financial Conduct Authority (FCA) “the right
starting point”.
However, the asset finance trade body warned
the
recommendations by the Financial Services Consumer Panel could
stifle a significant amount of lending to small businesses.
Go deeper with GlobalData
Although in favour of the Consumer Credit Act
(CCA), Stephen Sklaroff, director general of the FLA, repeated
previous concerns over the potential structure of the FCA,
which would regulate it.
“The Financial Services Consumer Panel is
right that future changes to consumer credit regulation should
start with the CCA,” said Sklaroff.
“Whether or not regulation transfers to the
new FCA, the regime which the FCA will inherit in the deposit and
savings markets is not appropriate for credit, and would put at
risk a significant amount of responsible and economically vital
consumer and small business lending.”
The panel has recommended a two-part process,
with adjoining review, to move consumer credit regulation to a body
which operates on a Financial Services and Markets Act model, as
the FCA is expected to.
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By GlobalDataCurrently, regulation under the CCA is handled
by the Office of Fair Trading as the Financial Services Authority
winds down
before being taken over by the FCA.
