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The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013

Type Statutory-Instrument

Publication 2013-07-25

Last updated 2023-07-11

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(46A) (1) The financial promotion restriction does not apply to a communication which relates to a controlled activity falling within paragraph 4C of Schedule 1 and which— (a) indicates clearly (by express words or otherwise) that a person is willing to facilitate another person (“B”) becoming the borrower under a paragraph 4C agreement for the purposes of B's business, and (b) does not indicate (by express words or otherwise) that the person is willing to facilitate B becoming the borrower under such an agreement for any other purpose. (2) The financial promotion restriction does not apply to a communication which relates to a controlled activity falling within paragraph 10BA of Schedule 1 and which— (a) indicates clearly (by express words or otherwise) that a person is willing to enter into a relevant credit agreement as lender for the purposes of another person's business, and (b) does not indicate (by express words or otherwise) that the person is willing to enter into a relevant credit agreement as lender for any other purpose. (3) The financial promotion restriction does not apply to a communication which relates to a controlled activity falling within paragraph 10BB of Schedule 1 and which— (a) indicates clearly (by express words or otherwise) that a person is willing to enter into a regulated consumer hire agreement as owner for the purposes of another person's business, and (b) does not indicate (by express words or otherwise) that the person is willing to enter into a regulated consumer hire agreement as owner for any other purpose. (4) In this article— (a) references to a “business” do not include a business carried on by— (i) the person communicating the promotion, or (ii) a person carrying on an activity of the kind specified by article 36A of the Regulated Activities Order (credit broking) in relation to the relevant credit agreement, paragraph 4C agreement or regulated consumer hire agreement to which the promotion relates; (b) “paragraph 4C agreement” has the meaning given in paragraph 4C of Schedule 1; (c) “relevant credit agreement” has the meaning given in paragraph 28 of Schedule 1.

(6) In Schedule 1 (controlled activities and controlled investments)—

(a) after paragraph 4A (operating a multilateral trading facility) , insert—

(4B) (1) Each of the following is a controlled activity— (a) effecting an introduction of an individual or relevant recipient of credit to a person who enters into as lender relevant credit agreements by way of business; (b) effecting an introduction of an individual or relevant recipient of credit to a person who enters into as lender regulated consumer hire agreements by way of business; (c) effecting an introduction of an individual or relevant recipient of credit to a person who carries on an activity of the kind specified in paragraph (a) or (b) by way of business; (d) presenting or offering an agreement which would (if entered into) be a relevant credit agreement to an individual or relevant recipient of credit; (e) assisting an individual or relevant recipient of credit by undertaking preparatory work in respect of a relevant credit agreement; (f) entering into a relevant credit agreement on behalf of a lender. (2) For the purposes of paragraph (1) it is immaterial whether the relevant credit agreement or regulated consumer hire agreement is subject to the law of a country outside the United Kingdom. (4C) (1) Where the condition in paragraph (2) is satisfied, operating an electronic system which enables the operator (“A”) to facilitate persons (“B” and “C”) becoming the lender and borrower under a paragraph 4C agreement is a controlled activity. (2) The condition is that the system operated by A is capable of determining which agreements should be made available to each of B and C (whether in accordance with general instructions provided to A by B or C or otherwise). (3) The following are controlled activities if carried on by A in the course of, or in connection with, the carrying on by A of the activity specified by paragraph (1)— (a) presenting or offering paragraph 4C agreements to B and C with a view to B becoming the lender under the paragraph 4C agreement and C becoming the borrower under the paragraph 4C agreement, (b) furnishing information relevant to the financial standing of a person (“Y”) with a view to assisting in the determination as to whether another person should— (i) enter into, as the lender, a paragraph 4C agreement with Y, or (ii) assume the rights of the lender under a paragraph 4C agreement under which Y is the borrower, (c) taking steps to procure the payment of a debt due under a paragraph 4C agreement, (d) performing duties, or exercising or enforcing rights under a paragraph 4C agreement on behalf of the lender, (e) ascertaining whether a credit information agency (within the meaning given by article 89A(6)) holds information relevant to the financial standing of an individual or relevant person, (f) ascertaining the contents of such information, (g) securing the correction of, the omission of anything from, or the making of any other kind of modification of, such information, or (h) securing that a credit information agency which holds such information— (i) stops holding the information, or (ii) does not provide it to any other person. (4) A “paragraph 4C agreement” is an agreement between one person (“the borrower”) and another person (“the lender”) by which the lender provides the borrower with credit and in relation to which either the condition in paragraph (5) or (6) is satisfied. (5) The condition in this paragraph is that the lender is an individual or relevant person. (6) The condition in this paragraph is that the borrower is an individual or relevant person and— (a) the lender provides the borrower with credit less than or equal to £25,000, or (b) the agreement is not 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. (7) Paragraphs (5) and (6) of article 60C of the Regulated Activities Order (exempt agreements: exemptions relating to nature of agreement) apply for the purposes of paragraph (6)(b). (8) It is immaterial for the purposes of this paragraph whether the lender is carrying on a regulated activity. (9) In this paragraph, “relevant person” means— (a) a partnership consisting of two or three persons not all of whom are bodies corporate, or (b) an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership.

(b) after paragraph 5 (managing investments), insert—

(5A) (1) The following activities are, when carried on in relation to debts due under a relevant credit agreement, controlled activities— (a) negotiating with the lender, on behalf of the borrower, terms for the discharge of a debt; (b) taking over, in return for payments by the borrower, that person's obligation to discharge a debt; (c) any similar activity concerned with the liquidation of a debt. (2) The following activities are, when carried on in relation to debts due under a consumer hire agreement, controlled activities— (a) negotiating with the owner, on behalf of the hirer, terms for the discharge of a debt; (b) taking over, in return for payments by the hirer, that person's obligation to discharge a debt; (c) any similar activity concerned with the liquidation of a debt. (5B) (1) Advising a borrower about the liquidation of a debt due under a relevant credit agreement is a controlled activity. (2) Advising a hirer about the liquidation of a debt due under a consumer hire agreement is a controlled activity.

(10BA) Entering into a relevant credit agreement as lender, or exercising or having the rights to exercise the rights of the lender under such an agreement, is a controlled activity. (10BB) Entering into a regulated consumer hire agreement as owner or exercising or having the right to exercise the rights of the owner under such an agreement is a controlled activity.

(d) after paragraph 26C , insert—

(26D) Rights under a relevant credit agreement (26E) Rights under a consumer hire agreement

(e) in paragraph 28 (interpretation) , insert in the appropriate place the following definitions—

“borrower” has the meaning given by article 60L of the Regulated Activities Order;

“consumer hire agreement” has the meaning given by article 60N of the Regulated Activities Order;

“hirer” has the meaning given by article 60N of the Regulated Activities Order;

“lender” has the meaning given by article 60L of the Regulated Activities Order;

“regulated consumer hire agreement” has the meaning given by article 60N of the Regulated Activities Order;

“relevant credit agreement” means a credit agreement (within the meaning given by article 60B of the Regulated Activities Order) other than a regulated mortgage contract (within the meaning of that Order);

“regulated credit agreement” has the meaning given by article 60B of the Regulated Activities Order;

“relevant recipient of credit” has the meaning given by article 60L of the Regulated Activities Order.

The Financial Services and Markets Act 2000 (Ombudsman Scheme) (Consumer Credit Jurisdiction) Order 2007

18

The Financial Services and Markets Act 2000 (Ombudsman Scheme) (Consumer Credit Jurisdiction) Order 2007 is revoked.

The Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009

19

In the Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009 , after article 6 (specific exemptions in respect of friendly societies), insert—

(6A) (1) This article provides exemptions from the obligations in sections 178 and 191D of the Act in relation to a person (“A”) who decides to acquire, increase, reduce or cease to have control over a UK authorised person (“B”) who— (a) carries on regulated activities which are relevant credit activities, and (b) does not carry on any other regulated activities. (2) Where A decides to acquire or increase control over B, A is exempt from the obligation imposed by section 178 unless giving effect to the decision would result in A beginning to be in the position of holding— (a) 33% or more of the shares in B or in a parent undertaking of B (“P”), (b) 33% or more of the voting power in B or P, or (c) shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B. (3) Where A decides to reduce or cease to have control over B, A is exempt from the obligation imposed by section 191D unless giving effect to the decision would result in A ceasing to be in the position of holding— (a) 33% or more of the shares in B or in a parent undertaking of B (“P”), (b) 33% or more of the voting power in B or P, or (c) shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B. (4) For the purposes of this article, each of the following is a “relevant credit activity”— (a) an activity of the kind specified by article 36A of the Regulated Activities Order (credit broking) when carried on in the case specified in paragraph (6), (7) or (8), (b) an activity of the kind specified by article 39D of that Order (debt adjusting) when carried on— (i) in the case specified in paragraph (6), by a person who also carries on an activity of the kind specified by sub-paragraph (a), (ii) by a person who also carries on an activity of the kind specified by sub-paragraph (d) or (e), or (iii) by a not-for-profit body, (c) an activity of the kind specified by article 39E of that Order (debt-counselling) when carried on— (i) in the case specified in paragraph (6), by a person who also carries on an activity of the kind specified by sub-paragraph (a), (ii) by a person who also carries on an activity of the kind specified by sub-paragraph (d) or (e), or (iii) by a not-for-profit body, (d) an activity of the kind specified by article 60B of that Order (regulated credit agreements) if— (i) it is carried on by a supplier, (ii) no charge (by way of interest or otherwise) is payable by the borrower in connection with the provision of credit under the regulated credit agreement, and (iii) the regulated credit agreement is not a hire-purchase agreement or a conditional sale agreement, (e) an activity of the kind specified by article 60N of that Order (regulated consumer hire agreements), (f) an activity of the kind specified by article 89A of that Order (providing credit information services) where carried on by a person who also carries on an activity of the kind specified by any of sub-paragraphs (a) to (e), or (g) an activity of the kind specified by article 64 of that Order (agreeing to carry on specified activities) so far as relevant to any activity of the kind specified by sub-paragraphs (a) to (f). (5) But an activity is not a relevant credit activity for the purposes of— (a) sub-paragraphs (a) to (e) of paragraph (4), and (b) sub-paragraph (g) of that paragraph so far at it relates to activities of the kind specified by any of those sub-paragraphs, if it relates to an agreement under which the obligation of the borrower to repay is secured, or is to be secured, by a legal mortgage on land. (6) The case specified in this paragraph is where a supplier (other than a domestic premises supplier) carries on the activity for the purposes of, or in connection with, the sale of goods or supply of services by the supplier to a customer (who need not be the borrower under the credit agreement or the hirer under the consumer hire agreement). (7) The case specified in this paragraph is where the activity relates to a green deal plan. (8) The case specified in this paragraph is where activity relates to a consumer hire agreement where the good being hired is a vehicle. (9) For the purposes of this regulation— - “borrower” includes— 1. any person providing a guarantee or indemnity under an agreement, and 2. a person to whom the rights and duties of the borrower under an agreement or a person falling within sub-paragraph (a) have passed by assignment or operation of law; - “conditional sale agreement” has the meaning given by article 60L of the Regulated Activities Order; - “customer” means a person to whom a supplier sells goods or supplies services or agrees to do so; - “domestic premises supplier” means a supplier who sells goods or supplies services to customers who are individuals while physically present in the dwelling of the customer or in consequence of an agreement concluded whilst the supplier was physically present in the dwelling of the customer (though a supplier who does so on an occasional basis is not to be treated as a “domestic premises supplier”); - “green deal plan” has the meaning given by section 1 of the Energy Act 2011 ; - “hire-purchase agreement” has the meaning given by the Regulated Activities Order; - “not-for-profit body” means a body which, by virtue of its constitution or any enactment— 1. is required (after payment of outgoings) to apply the whole of its income and any capital it expends for charitable or public purposes, and 2. is prohibited from directly or indirectly distributing amongst its members any part of its assets (otherwise than for charitable or public purposes); - “Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; - “regulated credit agreement” has the meaning given by the Regulated Activities Order; - “supplier” means a person whose main business is to sell goods or supply services and not to carry on a regulated activity, other than an activity of the kind specified by article 60N of the Regulated Activities Order (regulated consumer hire agreements).

PART 5 — Amendments of the Consumer Credit Act 1974 etc.

Amendments of the 1974 Act

20

(1) The 1974 Act is amended as follows.

(2) Part 1 (sections 1 to 7) (Office of Fair Trading) is omitted.

(3) In section 8 (consumer credit agreements) , for subsection (3) substitute—

(3) A consumer credit agreement is a regulated agreement within the meaning of this Act if it is a regulated credit agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order.

(4) In section 15 (consumer hire agreements) for subsection (2) substitute—

(2) A consumer hire agreement is a regulated agreement with the meaning of this Act if it is a regulated consumer hire agreement for the purposes of Chapter 14B of Part 2 of the Regulated Activities Order.

(5) Section 16 (exempt agreements) is omitted.

(6) Section 16A (exemption relating to high net worth debtors and hirers) is omitted.

(7) Section 16B (exemption relating to businesses) is omitted.

(8) Section 16C (exemption relating to investment properties) is omitted.

(9) For section 20 (total charge for credit), substitute—

(20) In this Act, “the total charge for credit” has the meaning given by the Regulated Activities Order for the purposes of Chapter 14A of Part 2 of that Order.

(10) Part 3 (sections 21 to 41ZB) (licensing of credit and hire business) is omitted .

(11) Section 43 (advertisements to which Part IV applies) and the heading immediately before it are omitted.

(12) Section 44 (form and content of advertisements) is omitted.

(13) Section 45 (prohibition of advertisement where goods etc. not sold for cash) is omitted.

(14) Section 47 (advertising infringements) is omitted.

(15) Section 51 (prohibition of unsolicited credit-tokens) is omitted.

(16) Section 51A (restrictions on provision of credit card cheques) is omitted.

(17) Section 51B (section 51A: exemption for business) is omitted.

(18) Section 52 (quotations) and the heading immediately before it are omitted.

(19) Section 53 (duty to display information) is omitted.

(20) Section 54 (conduct of business regulations) is omitted.

(21) Section 55A (pre-contractual explanations etc.) is omitted.

(22) Section 55B (assessment of creditworthiness) is omitted.

(23) In section 55C (copy of draft consumer credit agreement), for subsection (5) substitute—

(5) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (4)(d).

(24) In section 60 (form and content of agreements) , for subsection (6) substitute—

(6) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (5)(d).

(25) In section 61A (duty to supply copy of executed consumer credit agreement) , for subsection (7) substitute—

(7) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (6)(b)(iii). (8) In this section, “credit intermediary” means a person who in the course of business— (a) carries on any of the activities specified in article 36A(1)(d) to (f) of the Regulated Activities Order for a consideration that is or includes a financial consideration, and (b) does not do so as a creditor.

(26) In section 74 (exclusion of certain agreements from Part V) —

(a) in subsection (1B), omit paragraph (a);

(b) in subsection (1C), omit paragraph (b);

(d) in subsection (1F), omit paragraphs (b) and (c).

(27) Part 5A (sections 74A to 74B) (current account overdrafts) is omitted.

(28) In section 75A (further provision for liability of creditor for breaches by supplier) , for subsection (7) substitute—

(7) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (6)(c).

(29) In section 77B (fixed-sum credit agreement: statement of account to be provided on request) , for subsection (10) substitute—

(10) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (9)(d).

(30) Section 81 (appropriation of payments) is omitted.

(31) In section 82 (variation of agreements) —

(a) in subsection (2A), omit “as a result of section 16(6C) or 16C”;

(b) in subsection (3)(b), omit “as a result of section 16(6C) or 16C”;

(d) after subsection (7) insert—

(8) In this section, an “exempt agreement” means an agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order by virtue of article 60C(2) (regulated mortgage contracts and regulated home purchase plans) or article 60D (exemption relating to the purchase of land for non-residential purposes) of that Order.

(32) Section 82A (assignment of rights) is omitted.

(33) In section 93 (interest not to be increased on default), in paragraph (b) for “section 20(2)” substitute “ rules made by the FCA under paragraph (2)(d) of article 60M of the Regulated Activities Order ”.

(34) Section 112 (realisation of securities) is omitted.

(35) In section 113 (Act not to be evaded by use of security) , in subsection (3)(c), for “40(2), 65(1), 124(1) or 149(2)” substitute “ 65(1) or 124(1) or a notice under section 28A of the Financial Services and Markets Act 2000 ”.

(36) In section 114(3) (pawn-receipts) , for “115” substitute “ 117 ”.

(37) Section 115 (penalty for failure to supply copies of pledge agreement, etc.) is omitted.

(38) For section 126 (enforcement of land mortgages) substitute—

(1) A land mortgage securing an agreement of one the following types is enforceable (so far as is provided in relation to the agreement) on an order of the court only— (a) a regulated agreement; (b) a regulated mortgage contract; (c) a consumer credit agreement which would, but for article 60D of the Regulated Activities Order (exempt agreements: exemption relating to the purchase of land for non-residential purposes), be a regulated agreement. (2) Subject to section 140A(5) (unfair relationships between creditors and debtors), a regulated mortgage contract which would, but for article 60C(2) of the Regulated Activities Order (exempt agreements: exemption relating to the nature of the agreement), be a regulated agreement is to be treated for the purposes of Part 9 (judicial control) as if it were a regulated agreement. (3) In this section, “regulated mortgage contract” has the meaning given by article 61(3) of the Regulated Activities Order (regulated mortgage contracts)).

(39) In section 140A(5) (unfair relationships between creditors and debtors) , for “by virtue of section 16(6C)” substitute “ for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order by virtue of article 60C(2) of that Order (regulated mortgage contracts and regulated home purchase plans) ”.

(40) Section 140D (advice and information) is omitted.

(41) In section 145 (types of ancillary credit business) —

(a) for subsections (2) to (4) substitute—

(2) “Credit brokerage” means the carrying on of an activity of the kind specified by article 36A(1)(a) to (c) of the Regulated Activities Order (credit broking), disregarding the effect of paragraph (2) of that article.

(b) for subsection (5), substitute—

(5) “Debt adjusting” means the carrying on of an activity of the kind specified by article 39D of that Order (debt adjusting).

(6) “Debt-counselling” means the carrying on of an activity of the kind specified by article 39E of that Order (debt-counselling).

(d) for subsection (7), substitute—

(7) “Debt-collecting” means the carrying on of an activity of the kind specified by article 39F of that Order (debt-collecting).

(e) for subsection (7A), substitute—

(7A) “Debt administration” means the carrying on of an activity of the kind specified by article 39G of that Order (debt administration), disregarding the effect of paragraph (3) of that article.

(f) for subsections (7B) to (7D) substitute—

(7B) A person (“P”) provides credit information services if P carries on, by way of business, an activity of the kind specified by article 89A(1) or (2) of that Order (providing credit information services).

(g) for subsection (8) substitute—

(8) A person (“P”) operates a credit reference agency if P carries on, by way of business, an activity of the kind specified by article 89B of that Order (providing credit references).

(42) Sections 146 to 152 (including the heading immediately before section 147) are omitted.

(43) In section 155 (right to recover brokerage fees) —

(a) in subsection (2)—

(i) in paragraph (b), for “such as is referred to in section 145(2)(a)(ii)” substitute “ desiring to obtain credit to finance the acquisition or provision of a dwelling occupied or to be occupied by that individual or a relative of that individual ”;

(ii) for paragraph (c) and the “or” before it, substitute—

(c) a credit agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order, or (d) an agreement which is not a regulated credit agreement or a regulated consumer hire agreement but which would be such an agreement if the law applicable to the agreement were the law of a part of the United Kingdom.

(b) in subsection (2A)(a), for “section 146(5A)” substitute “ article 36E of the Regulated Activities Order (activities in relation to certain agreements relating to land) ”.

(44) Section 156 (entry into agreements) and the heading immediately before it are omitted.

(45) In section 159(5) (correction of wrong information) , for “the specified fee” substitute “ the prescribed fee ”.

(46) In section 160(4)(c) (alternative procedure for business consumers) , for “the specified fee” substitute “ the prescribed fee ”.

(47) Section 160A (credit intermediaries) is omitted.

(48) In section 161 (enforcement authorities) —

(a) paragraph (a) of subsection (1) is omitted;

(b) after subsection (1), insert—

(1A) Subsection (1) does not limit any function of the FCA in relation to the enforcement of this Act or regulations made under it.

(49) In section 162 (powers of entry and inspection) , subsections (5) and (8) are omitted.

(50) In section 165 (obstruction of authorised officers) , subsection (1A) is omitted.

(51) In section 167 (penalties), subsection (2) is omitted.

(52) In section 171 (onus of proof in various proceedings), subsection (3) is omitted.

(53) In section 173(3) (contracting-out forbidden) , for “OFT” substitute “ FCA ”.

(54) In section 174A (powers to require provision of information or documents etc) , for subsection (5) substitute—

(5) In this section, “relevant authority” means an enforcement authority or an officer of an enforcement authority.

(55) In section 180(2) (power to prescribe form etc. of copies), omit “(except section 35)”.

(56) In section 181 (power to alter monetary limits etc) —

(a) in subsection (1), omit “16B(1),”, “39A(3),” and “118(1)(b), 120(1)(a),”;

(b) in subsection (2), omit “16B(1),” and “39A(3),”.

(57) In section 182 (regulations and orders) , in subsection (1), omit “2(1)(a),”.

(58) In section 183 (determinations etc. by OFT) , omit subsection (2).

(59) In section 185 (agreement with more than one debtor or hirer) , omit subsection (1A).

(60) In section 189 (definitions)—

(a) in subsection (1)—

(i) omit the definitions of “advertiser”, “appeal period”, “exempt agreement”, “group licence”, “licence”, “licensed”, “licensee”, “quotation”, “register”, “specified fee”, “standard licence” and “unlicensed”;

(ii) in the definition of “credit information services”, for “has the meaning given by” substitute “ is to be read in accordance with ”;

(iii) in the definition of “credit reference agency”, for “has the meaning given by” substitute “ is to be read in accordance with ”;

(iv) in the definition of “deposit”, omit “(except in section 16(10) and 25(1B)”;

(v) after the definition of “redemption period” insert—

“Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

(vi) for the definition of “regulated agreement” substitute—

“regulated agreement” means a consumer credit agreement which is a regulated agreement (within the meaning of section 8(3)) or a consumer hire agreement which is a regulated agreement (within the meaning of section 15(2));

(vii) for the definition of “total charge for credit” substitute—

“total charge for credit” has the meaning given by section 20;

(b) in subsection (1A) , omit “36E(3),”;

(c) in subsection (2A) , for the words from “subsections (2) to (5)” to the end, substitute “ article 60C(5) and (6) of the Regulated Activities Order applies ”;

(d) in subsection (5) , omit “or the OFT” in the first place and “or the OFT (as the case may be)”.

(61) Section 189A (meaning of “consumer credit EEA firm”) is omitted.

(62) In section 190 (financial provisions) , subsection (2) is omitted.

(63) In section 191 (special provisions as to Northern Ireland) , subsections (1) and (2) are omitted.

(64) In Schedule 1 (prosecution and punishment of offences) , in the table, omit the entries for sections 7, 39(1), 39(2), 39(3), 45, 47(1), 51(1), 51A(1), 115, 160A, 167(2) and 174(5).

(65) In Schedule 2 (examples of use of new terminology)—

(a) in Part 1, omit the entry for “advertiser”;

(b) in example 5, for “, according to regulations made under section 20(1), constitutes the total charge for credit” substitute “ constitutes the total charge for credit (within the meaning given by section 20) ”.

(66) In Schedule 3 (transitional and commencement provisions) —

(a) omit paragraphs 5 to 7 and the headings immediately before each of those paragraphs;

(b) omit paragraph 11 and the heading immediately before it;

PART 6 — Amendments to secondary legislation made under the 1974 Act

Revocation of secondary legislation made under the 1974 Act

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The following subordinate instruments, or the provisions of subordinate instruments, are revoked—

(a) the Consumer Credit Licensing (Representations) Order 1976 ;

(b) the Consumer Credit (Termination of Licences) Regulations 1976 ;

(d) the Consumer Credit (Total Charge for Credit) Regulations 1980 ;

(e) the Consumer Credit (Termination of Licences) (Amendment) Regulations 1981 ;

(f) the Consumer Credit (Conduct of Business) (Pawn Records) Regulations 1983 ;

(g) the Consumer Credit (Exempt Advertisements) Order 1985 ;

(h) the Consumer Credit (Total Charge for Credit and Rebate on Early Settlement) (Amendment) Regulations 1989 ;

(i) the Consumer Credit (Exempt Agreements) Order 1989 ;

(j) the Consumer Credit (Exempt Agreements) (Amendment) Order 1989 ;

(k) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1989 ;

(l) the Consumer Credit (Exempt Agreements) (Amendment) Order 1991 ;

(m) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1991 ;

(n) the Consumer Credit (Exempt Agreements) (Amendment) (No. 3) Order 1991 ;

(o) the lLink>Consumer Credit (Exempt Agreements) (Amendment) Order 1993 ;

(p) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1993 ;

(q) the Consumer Credit (Exempt Agreements) (Amendment) Order 1994 ;

(r) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1995 ;

(s) the Consumer Credit (Exempt Agreements) (Amendment) Order 1996 ;

(t) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1996 ;

(u) the Consumer Credit (Quotations) (Revocation) Regulations 1997 ;

(v) the Consumer Credit (Exempt Agreements) (Amendment) Order 1998 ;

(w) the Consumer Credit (Exempt Agreements) (Amendment) Order 1999 ;

(x) the Consumer Credit (Content of Quotations) and Consumer Credit (Advertisements) (Amendment) Regulations 1999 ;

(y) regulations 3 and 5 of the Consumer Credit (Total Charge for Credit, Agreements and Advertisements) (Amendment) Regulations 1999 ;

(z) the Consumer Credit (Conduct of Business) (Credit References) (Amendment) Regulations 2000 ;

(aa) the Consumer Credit (Advertisements and Content of Quotations) (Amendment) Regulations 2000 ;

(bb) the Consumer Credit (Advertisements) Regulations 2004 ;

(cc) the Consumer Credit (Exempt Agreements) (Amendment) Order 2006 ;

(dd) the Consumer Credit (Advertisements) (Amendment) Regulations 2007 ;

(ee) the Consumer Credit (Exempt Agreements) Order 2007 ;

(ff) the Consumer Credit (Exempt Agreements) (Amendment) Regulations 2008 ;

(gg) the Consumer Credit (Total Charge for Credit) Regulations 2010 ;

(hh) the Consumer Credit (Advertisements) Regulations 2010 ;

(ii) the Consumer Credit (Total Charge for Credit) (Amendment) Regulations 2012 .

22

Articles 1, 3 and 4 of the Consumer Credit Licensing (Representations) Order 1976 continue to apply in so far as section 34 or 34ZA of the 1974 Act continue to have effect by virtue of Part 8; and for that purpose each reference to the Director is to be treated as a reference to the FCA.

The Consumer Credit (Agreements) Regulations 1983

23

(1) The Consumer Credit (Agreements) Regulations 1983 are amended as follows.

(2) In regulation 1(2) (interpretation), for the definition of “the Total Charge for Credit Regulations” substitute—

“the total charge for credit rules” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order;

(3) In every other place where “Total Charge for Credit Regulations” appears, substitute “ total charge for credit rules ”.

(4) In regulation 8 (application of Regulations), for paragraph (1B), substitute—

(1B) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraph (1A)(c).

(5) In Schedule 1 (information to be contained in documents embodying regulated consumer credit agreements other than modifying agreements)—

(a) in paragraph 10, in the second column, omit “regulation 6 of”;

(b) before paragraph 19A, insert the heading “ Land-related agreements ”;

(i) for the entry in the first column, substitute—

Agreements which— (a) are intended primarily to finance the acquisition or retention of land or the renovation or improvement of a building or any other agreement secured by a mortgage on land or, in Scotland, by a standard security within the meaning of the Conveyancing and Feudal Reform (Scotland) Act 1970 , and (b) provide for the possibility of any variation of the rate of interest if it is to be assumed, by virtue of the total charge for credit rules, that the variation will take place but the amount of the variation cannot be ascertained at the date of the making of the agreement.

(ii) for the entry in the second column, for “regulation 15A(2) of the Total Charge for Credit Regulations 1980” substitute “the total charge for credit rules”.

(6) In Schedule 7 (provisions relating to the disclosure of the APR)—

(a) in paragraph 1, omit “regulation 6 of”;

(b) in paragraphs 2 and 3, omit “the Schedule to”.

(7) In Schedule 8 (regulated modifying agreements)—

(a) in paragraph 9, in sub-paragraph (1) of column 2, omit “regulation 6 of”;

(b) before paragraph 19A, insert the heading “ Land-related agreements ”;

(i) in the entry in the first column, for “regulation 15A of the Total Charge for Credit Regulations 1980” substitute “ paragraph 19A of Schedule 1 ”;

(ii) for the entry in the second column, for “regulation 15A(2) of the Total Charge for Credit Regulations 1980” substitute “ the total charge for credit rules ”.

The Consumer Credit (Early Settlement) Regulations 2004

24

In regulation 1(2) of the Consumer Credit (Early Settlement) Regulations 2004 (interpretation) —

(a) for the definition of “the Total Charge for Credit Regulations” substitute—

“the total charge for credit rules” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order;

(b) in every other place where “Total Charge for Credit Regulations” appears, substitute “ total charge for credit rules ”.

The Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007

25

In the Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 , omit regulation 42 and 43 (duration of licences and charges).

The Consumer Credit (Disclosure of Information) Regulations 2010

26

(1) The Consumer Credit (Disclosure of Information) Regulations 2010 are amended as follows.

(2) In every place where “Total Charge for Credit Regulations” appears (other than in the definition of “the Total Charge for Credit Regulations” and in regulation 1(7)), substitute “ total charge for credit rules ”.

(3) In regulation 1 (citation, commencement interpretation)—

(a) in paragraph (2), in the definition of “credit intermediary”, for “section 160A” substitute “ section 61A ”;

(b) in paragraph (2), for the definition of “the Total Charge for Credit Regulations” substitute—

“the total charge for credit rules” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order;

(4) In regulation 2 (agreements to which these Regulations apply), for paragraph (6) substitute—

(6) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraph (4)(c).

(5) In regulation 3(5)(b) (information to be disclosed: agreements other than telephone contracts, non-telephone distance contracts, excluded pawn agreements and overdraft agreements), for “regulation 6(g) of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”.

(6) In regulation 6 (information to be disclosed: distance contracts for the purpose of a business), for paragraph (3) substitute—

(3) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraph (1).

(7) In regulation 7, for paragraph (3) substitute—

(3) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraph (1).

(8) In Schedule 1 (pre-contract credit information)—

(a) in table 3, omit “regulation 6(g) of”;

(b) in table 5, for “Office of Fair Trading” substitute “ Financial Conduct Authority ”.

(9) In Schedule 2 (provisions relating to calculation and disclosure of the total charge for credit and APR)—

(a) in paragraph 1(a), for “regulation 6(o) of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”;

(b) in paragraphs 3 and 4, for “regulation 5 of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”.

(10) In Schedule 3 (European Consumer Credit Information), in table 5, for “Office of Fair Trading” substitute “ Financial Conduct Authority ”.

The Consumer Credit (Agreements) Regulations 2010

27

(1) The Consumer Credit (Agreements) Regulations 2010 are amended as follows.

(2) In every place where “Total Charge for Credit Regulations” appears (other than in the definition of “the Total Charge for Credit Regulations” and in regulation 1(6)), substitute “ total charge for credit rules ”.

(3) In regulation 1 (citation, commencement interpretation)—

(a) in paragraph (3), in the definition of “credit intermediary”, for “section 160A” substitute “ section 61A ”;

(b) in paragraph (3), for the definition of “the Total Charge for Credit Regulations” substitute—

“the total charge for credit rules” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order;

(4) In regulation 2 (agreements to which these regulations apply), for paragraph (6) substitute—

(6) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraphs (3)(c) and (5).

(5) In Schedule 1 (information to be included in regulated consumer credit agreements), in paragraph 33, in the second column, for “Office of Fair Trading” substitute “ Financial Conduct Authority ”.

(6) In Schedule 4 (provisions relating to calculation and disclosure of the total charge for credit and APR)—

(a) in paragraph 1(a), for “regulation 6(o) of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”;

(b) in paragraphs 3 and 4, for “regulation 5 of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”.

PART 7 — Consequential amendments and transitional provisions

Consequential amendments to other legislation etc.

28

The Schedule to this Order contains further consequential amendments and transitional provisions.

PART 8 — Transitional provisions

CHAPTER 1 — Interpretation

Interpretation of Part 8

29

In this Part—

“appeal period”, “debtor”, “hirer”, “licence”, “licensee”, “regulated agreement” and “standard licence” have the meanings given by the 1974 Act (disregarding any repeal of the 1974 Act by this Order);

“appropriate regulator” means—in relation to a person who is, or is applying to become, a PRA-authorised person, the PRA;in any other case, the FCA.

CHAPTER 2 — Licensing etc.

Meaning of “relevant person” in Chapter 2

30

(1) In this Chapter, “relevant person” means a person who—

(a) immediately before 1st April 2014 held a licence under the 1974 Act, and

(b) on 1st April 2014 has a Part 4A permission to carry on a regulated activity by virtue of this Order (regardless of whether the person had permission via other means).

(2) Paragraph (3) applies where, before 1st April 2014, the OFT—

(a) had given a notice to a person (“A”) under section 32A(2) of the 1974 Act (suspension of a standard licence) that it is suspending A’s licence, but

(b) had not determined under section 34ZA of that Act (representations to OFT: suspension under section 32A) whether or not to confirm such a decision.

(3) For the purposes of article 39 (suspension of licence where determination made before 1st April 2014 but not confirmed), and of paragraph (1) in so far as it defines “relevant person” for the purposes of that article—

(a) A is to be treated as holding a licence under the 1974 Act immediately before 1st April 2014, and

(b) section 32A of that Act (power to suspend licence) is to be treated as if subsection (5) did not apply at that time.

(4) Paragraph (5) applies where, before 1st April 2014—

(a) the OFT had—

(i) given a notice to a person (“B”) under section 32A(2) of the 1974 Act that it is suspending B’s licence, and

(ii) confirmed under section 34ZA of that Act its determination under section 32A of that Act, and

(b) either—

(i) B had submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3) with respect to that suspension, and the appeal had not been determined, or

(ii) B had not submitted such a notice of appeal, but the specified period in respect of an appeal against the suspension had not expired.

(5) For the purposes of article 40 (suspension of licence where determination made before 1st April 2014 and confirmed), and of paragraph (1) in so far as it defines “relevant person” for the purposes of that article—

(a) B is to be treated as holding a licence under the 1974 Act immediately before 1st April 2014, and

(b) section 32A of that Act (power to suspend licence) is to be treated as if subsection (5) did not apply at that time.

(6) In this article, “specified period” has the meaning given in section 41 of the 1974 Act.

Applications for a standard licence where no determination made before 1st April 2014

31

(1) Paragraphs (3) to (9) apply if, before 1st April 2014—

(a) the OFT received an application under section 24A of the 1974 Act (applications for standard licences) for a standard licence,

(b) the applicant (“A”) had not withdrawn the application, and

(2) It is immaterial for the purposes of this article whether the OFT had, before 1st April 2014, given notice to A under section 27 of the 1974 Act (determination of applications) that the OFT was minded to refuse A's application.

(3) The application is to be treated as if it had been made to the appropriate regulator—

(a) if A is an authorised person, and the appropriate regulator is the PRA, under section 55I of the Act (variation by PRA at request of authorised person) ;

(b) if A is not an authorised person, under section 55A of the Act (application for permission) ;

(c) if A is an authorised person and the appropriate regulator is the FCA, under section 55H of the Act (variation by the FCA at request of authorised person) .

(4) The application is to be treated as relating to the following regulated activities—

(a) if A's application related to the carrying on of an ancillary credit business in so far as it comprised or related to credit brokerage (within the meaning of the 1974 Act), the regulated activity of the kind specified by article 36A of the Regulated Activities Order (credit broking),

(b) if—

(i) A's application related to the carrying on of an ancillary credit business in so far as it comprised or related to the activity of debt-administration (within the meaning of the 1974 Act), and

(ii) A—

(aa) indicated in A's application that A envisaged carrying on a business in a manner which would, if carried on after 1st April 2014, involve the carrying on of an activity of the kind specified by article 36H of the Regulated Activities Order (operating an electronic system in relation to lending), or

(bb) had, before 1st April 2014, given notice to the FCA of A's intention to carry on such a business,

a regulated activity of the kind specified by article 36H of the Regulated Activities Order,

(c) to the extent that A's application related to any other activity, those regulated activities which are activities which were described in the application.

(5) If—

(a) A's application related to the carrying on of an ancillary credit business in so far as it comprised or related to the activity of debt-administration (within the meaning of the 1974 Act),

(b) A's application is not, by virtue of paragraph (4), treated as relating to a regulated activity of the kind specified by article 36H of the Regulated Activities Order, and

the application is, from the date on which the FCA receives the notice, to be treated as relating to that activity, in addition to any activity to which the application is to be treated as relating to under paragraph (4).

(6) Any description of business specified in A's application is to be treated for the purposes of Part 4A of the Act as forming part of A's application.

(7) Section 55U(1) to (4) of the Act (applications under Part 4A) does not apply to A's application.

(8) For the purposes of section 55V of the Act (determination of applications) , the appropriate regulator is to be treated as having received the application on 1st April 2014.

(9) For the purpose of paragraph (4), it is the nature of the activities in relation to which a licence is sought that matters, not how they are described in the application.

Applications for a standard licence where determination has been made but appeal period has not ended

32

(1) Paragraphs (2) to (4) apply if, before 1st April 2014—

(a) the OFT had given a notice to a person (“A”) of its determination to refuse to issue a standard licence to A in accordance with A's application, and

(b) the appeal period in relation to that decision had not ended.

(2) The notice is to be treated as—

(a) if A does not have a Part 4A permission, a decision notice given under section 55X(4) of the Act by the FCA to A of the decision to refuse A's application for Part 4A permission;

(b) in any other case, a decision notice given under section 55X(4) of the Act of the decision of the appropriate regulator to refuse A's application to vary A's Part 4A permission.

(3) But if A had, before 1st April 2014, submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3) —

(a) section 55Z3 of the Act (right to refer matters to the Tribunal) does not apply, and

(b) for the purposes of section 55V(4) of the Act, the appropriate regulator is not to be taken as having determined the application.

(4) The notice has effect subject to any necessary modifications.

Variation of licence at request of licensee where no determination made before 1st April 2014

33

(1) Paragraphs (3) to (6) apply if, before 1st April 2014—

(a) the OFT received an application under section 30(1) of the 1974 Act (variation by request) for a variation of a standard licence,

(b) the applicant (“A”) had not withdrawn the application,

A is a relevant person.

(2) It is immaterial for the purposes of this article whether the OFT had, before 1st April 2014, given notice to A under section 30(4) of the 1974 Act (variation by request) that the OFT was minded to refuse A's application.

(3) The application is to be treated as if it had been made to the appropriate regulator under section 55I or 55H of the Act (as the case may be).

(4) The application has effect subject to any necessary modifications.

(5) Section 55U(1) to (4) of the Act (applications under Part 4A) does not apply to A's application.

(6) For the purposes of section 55V of the Act (determination of applications), the appropriate regulator is to be treated as having received the application on 1st April 2014.

Variation of licence at request of licensee where determination has been made but appeal period has not ended

34

(1) Paragraphs (2) to (4) apply if, before 1st April 2014—

(a) the OFT had given notice to a person (“A”) of its decision to refuse to vary a standard licence in accordance with an application made by A,

(b) the appeal period in relation to that determination had not ended, and

Compulsory variation of a licence where no determination to vary made before 1st April 2014

35

(1) Paragraphs (2) to (4) apply if, before 1st April 2014—

(a) the OFT had given notice to a person (“A”) under section 31(2) of the 1974 Act (compulsory variation) that it is minded to vary the terms of A's licence,

(b) the OFT had not determined to vary A's licence under that section, and

Compulsory variation of a licence where determination to vary made before 1st April 2014

36

(1) Paragraphs (2) to (4) apply if, before 1st April 2014—

(a) the OFT had given notice of its determination under section 31 of the 1974 Act to vary the terms of the licence of a person (“A”),

(b) the appeal period in relation to that determination had not ended, and

A is a relevant person.

(2) The notice is to be treated as a written notice given under section 55Y(7) of the Act by the FCA of its decision to vary A's Part 4A permission (except for subsection (9) of section 55Y which does not apply).

(3) But if A had, before 1st April 2014, submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3), section 55Z3 of the Act (right to refer matters to the Tribunal) does not apply.

(4) The notice has effect subject to any necessary modifications.

Revocation etc. of licence where no determination made before 1st April 2014

37

(1) Paragraphs (3) to (5) apply if, before 1st April 2014—

(a) the OFT had given a notice under section 27 of the 1974 Act (determination of applications) to a person (“A”) that it is minded to refuse A's application to renew A's standard licence,

(b) the OFT had not determined to refuse to renew A's licence, and

A is a relevant person.

(2) Paragraphs (3) to (5) also apply if, before 1st April 2014—

(a) the OFT had given a notice under section 32(2) of the 1974 Act (revocation of a standard licence) to a person (“A”),

(b) the OFT had not determined to revoke A's licence under that section, and

A is a relevant person.

(3) The notice is to be treated as—

(a) if A has Part 4A permission only by virtue of this Order, a warning notice given under section 55Z(1) of the Act by the FCA to A of the proposal by the FCA to cancel A's Part 4A permission (except for the purposes of sections 387 (warning notices), 392(a) (application of sections 393 and 394), in so far as it applies to section 393 (third party rights), and 393 of the Act, which do not apply);

(b) in any other case, a written notice under section 55Y(4) of the Act of the proposal by the FCA to vary A's Part 4A permission (except for subsections (5) and (6) of section 55Y which do not apply).

(4) The notice has effect subject to any necessary modifications.

(5) If the period for making representations under section 34 of the 1974 Act in connection with that notice had not expired before 1st April 2014, subsections (1) and (2) of that section continue to apply as if—

(a) in subsection (1), references to the OFT (apart from the first reference) were references to the FCA or, before 1st April 2014, the OFT;

(b) in subsection (2), the reference to the OFT was to the FCA.

Revocation etc. of licence where determination made before 1st April 2014

38

(1) Paragraphs (3) to (5) apply if, before 1st April 2014—

(a) the OFT had given notice of its determination under section 27 of the 1974 Act not to renew the standard licence of a person (“A”),

(b) the appeal period in relation to that determination had not ended, and

A is a relevant person.

(2) Paragraphs (3) to (5) apply if, before 1st April 2014—

(a) the OFT had given notice of its determination under section 32 of the 1974 Act to revoke the standard licence of a person (“A”),

(b) the appeal period in relation to that determination had not ended, and

A is a relevant person.

(3) The notice is to be treated as—

(a) if A has Part 4A permission only by virtue of this Order, a decision notice given under section 55Z(2) of the Act by the FCA to A of the decision by the FCA to cancel A's Part 4A permission (except for the purposes of sections 392(b) (application of sections 393 and 394), in so far as it applies to section 393 (third party rights), and 393 of the Act, which do not apply);

(b) in any other case, a written notice under section 55Y(7) of the Act of the decision of the FCA to vary A's Part 4A permission (except for subsection (9) of section 55Y which does not apply).

(4) But if A had, before 1st April 2014, submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3), section 55Z3 of the Act (right to refer matters to the Tribunal) does not apply.

(5) The notice has effect subject to any necessary modifications.

Suspension of licence where determination made before 1st April 2014 but not confirmed

39

(1) Paragraphs (2) to (4) apply if, before 1st April 2014—

(a) the OFT had given a notice to a person (“A”) under section 32A(2) of the 1974 Act (suspension of a standard licence) that it is suspending A's licence,

(b) the OFT had not, under section 34ZA of the 1974 Act (representations to OFT: suspension under section 32A) determined whether or not to confirm such a decision, and

A is a relevant person.

(2) The notice is to be treated as—

(a) if A has Part 4A permission only by virtue of this Order—

(i) a written notice under section 55Y(4) of the Act of the decision of the FCA to vary A's Part 4A permission (except for subsections (5) and (6) of section 55Y which do not apply), and

(ii) a warning notice given under section 55Z(1) of the Act by the FCA to A of the proposal by the FCA to cancel A's Part 4A permission (except for the purposes of sections 387 (warning notices), 392(a) (application of sections 393 and 394), in so far as it applies to section 393 (third party rights), and 393 of the Act, which do not apply);

(b) in any other case, a written notice under section 55Y(4) of the Act of the decision of the FCA to vary A's Part 4A permission (except for subsections (5) and (6) of section 55Y which do not apply).

(3) The notice has effect subject to any necessary modifications.

(4) If the period for making representations under section 34ZA of the 1974 Act in connection with that notice had not expired before 1st April 2014, subsections (1) and (2) of that section continue to apply as if—

(a) in subsection (1) each reference to the OFT (apart from the first reference) were a reference to the FCA or, before 1st April 2014, the OFT;

(b) in subsection (2)—

(i) the reference to the OFT was to the FCA;

(ii) the words from “reconsider its determination” to “doing so must” were omitted.

Suspension of licence where determination made before 1st April 2014 and confirmed

40

(1) Paragraphs (2) to (4) apply if, before 1st April 2014—

(a) the OFT had given a notice to a person (“A”) under section 34ZA of the 1974 Act (representations to OFT: suspension under section 32A) of its determination to confirm a decision to suspend A's licence under section 32A of that Act, and

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A is a relevant person.

(2) The notice is to be treated as—

(a) if A has Part 4A permission only by virtue of this Order—

(i) a written notice under section 55Y(7) of the Act of the decision of the FCA to vary A's Part 4A permission (except for subsection (9) of section 55Y which does not apply), and

(ii) a decision notice given under section 55Z(2) of the Act by the FCA of the decision by the FCA to cancel A's Part 4A permission (except for the purposes of sections 392(b) (application of sections 393 and 394), in so far as it applies to section 393 (third party rights), and 393 of the Act, which do not apply);

(b) in any other case, a written notice under section 55Y(7) of the Act of the decision of the FCA to vary A's Part 4A permission (except for subsection (9) of section 55Y which does not apply).

(3) But if A had, before 1st April 2014, submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3), section 55Z3 of the Act (right to refer matters to the Tribunal) does not apply.

(4) The notice has effect subject to any necessary modifications.

Imposition of requirements etc. where no determination made before 1st April 2014

41

(1) Paragraphs (2) to (5) apply if, before 1st April 2014—

(a) the OFT had given a notice under section 33D(2) of the 1974 Act (notice of intention of OFT to impose requirements on licensee) to a person (“A”) that the OFT is minded to make a determination to impose a requirement on A under section 33A of the 1974 Act or to vary or revoke a requirement imposed under section 33A of that Act,

(b) the OFT had not determined to impose a requirement on A or to vary or revoke a requirement imposed on A, and

A is a relevant person.

(2) The notice is to be treated as written notice under section 55Y(4) of the Act of a proposal by the FCA to impose a requirement on A or to vary or to cancel a requirement (except for subsections (5) and (6) of section 55Y which do not apply).

(3) The notice has effect subject to any necessary modifications.

(4) In deciding whether to impose a requirement on A, the FCA must have regard to the guidance prepared by the OFT under section 33E of the 1974 Act in force immediately before 1st April 2014.

(5) If the period for making representations under section 34 of the 1974 Act in connection with that notice had not expired before 1st April 2014, subsections (1) and (2) of that section continue to apply as if—

(a) in subsection (1), references to the OFT (apart from the first reference) were references to the FCA or, before 1st April 2014, the OFT;

(b) in subsection (2), the reference to the OFT was to the FCA.

Imposition of requirements etc. where determination made but appeal period has not ended

42

(1) Paragraphs (2) to (4) apply if, before 1st April 2014—

(a) the OFT had given notice to a person (“A”) under section 33D of the 1974 Act of its determination to impose a requirement on A under section 33A of the 1974 Act or to vary or revoke a requirement imposed under section 33A of that Act,

(b) the appeal period in relation to that determination had not ended, and

A is a relevant person.

(2) The notice is to be treated as written notice under section 55Y(7) of the Act of the decision by the FCA under section 55L of the Act to impose a requirement on A or to vary or to cancel a requirement (except for subsection (9) of section 55Y which does not apply).

(3) But if A had, before 1st April 2014, submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3), section 55Z3 of the Act (right to refer matters to the Tribunal) does not apply.

(4) The notice has effect subject to any necessary modifications.

Failure to comply with information requirement

43

(1) Paragraph (2) applies if, before 1st April 2014, a relevant person (“A”) had failed to do something A was required to do by virtue of section 36B or 36C of the 1974 Act (power of OFT to require information or to require access to premises) .

(2) Section 36E of the 1974 Act (failure to comply with information requirement) continues to apply in connection with A's failure as if the reference to the OFT were a reference to the FCA.

Civil penalties – where no determination made before 1st April 2014

44

(1) Paragraphs (2) to (7) apply if, before 1st April 2014—

(a) the OFT had given a notice under section 39B(1) of the 1974 Act (notice that OFT is minded to impose a civil penalty) to a person (“A”) that it is minded to impose a penalty on A under section 39A of the 1974 Act (power to impose civil penalties) , and

(b) the OFT had not before 1st April 2014—

(i) given A a penalty notice under section 39A of the 1974 Act, or

(ii) given notice to A under section 34 of the 1974 Act of its determination not to give such a penalty notice.

(2) The notice is to be treated as a warning notice given by the FCA to A under section 207(1)(b) of the Act (except for the purposes of sections 210 (statements of policy) , 387 (warning notices), 392(a) (application of sections 393 and 394), in so far as it applies to section 393 (third party rights), and 393 of the Act which do not apply).

(3) The notice has effect subject to any necessary modifications.

(4) For the purposes of this article, each reference in Part 14 of the Act and any provision made under Part 14 of the Act to an “authorised person” is to be treated as including a reference to A.

(5) If the period for making representations under section 34 of the 1974 Act in connection with that notice had not expired before 1st April 2014, subsections (1) and (2) of that section continue to apply as if—

(a) in subsection (1), references to the OFT (apart from the first reference) were references to the FCA or, before 1st April 2014, the OFT;

(b) in subsection (2), the reference to the OFT was to the FCA.

(6) In determining what if any financial penalty to impose on A, the FCA must have regard to—

(a) any penalty or fine that has been imposed on A by another body in relation to the conduct giving rise to the possible imposition of the penalty;

(b) other steps the OFT or FCA has taken, or the FCA might take, in relation to that conduct;

(c) the statement of policy prepared by the OFT under section 39C of the 1974 Act as most recently published at the time the conduct occurred.

(7) The financial penalty imposed on A by the FCA in relation to each failure to comply with a requirement may not exceed £50,000.

(8) Section 210 of the Act (statement of policy) does not apply to a penalty imposed by the FCA by virtue of this article.

Civil penalties – where determination made but appeal period has not ended

45

(1) Paragraphs (2) to (5) apply if, before 1st April 2014—

(a) the OFT had given A a penalty notice under section 39A of the 1974 Act, and

(b) the appeal period in relation to that notice had not expired.

(2) The notice is to be treated as a decision notice given by the FCA to A under section 208(1)(b) of the Act (except for the purposes of sections 210 (statement of policy), 392(b) (application of sections 393 and 394), in so far as it applies to section 393 (third party rights), and 393 of the Act, which do not apply).

(3) But if A has, before 1st April 2014, submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3), section 208(4) of the Act (right to refer matters to the Tribunal) does not apply.

(4) The notice has effect subject to any necessary modifications.

(5) For the purposes of this article, each reference in Part 14 of the Act (disciplinary measures) and any provision made under Part 14 of the Act to an “authorised person” is to be treated as including a reference to A.

Civil penalties – where determination made before 1st April 2014 and penalty due

46

(1) Paragraphs (2) to (4) apply if, before 1st April 2014—

(a) the OFT had given A a penalty notice under section 39A of the 1974 Act , and

(b) the appeal period in relation to that notice had expired.

(2) The penalty is payable to the FCA (rather than the OFT).

(3) If a defaulter (within the meaning of section 39A of the 1974 Act) had not paid to the OFT before 1st April 2014 the penalty imposed under that section—

(a) the defaulter must pay the unpaid balance to the FCA;

(b) section 39A(5) of the 1974 Act continues to apply to the defaulter with the following modifications—

(i) omit “to the OFT”;

(ii) the reference to the OFT in paragraph (b) is to be treated as a reference to the FCA.

(4) For the purposes of Part 3 of Schedule 1ZA to the Act (penalties and fees) —

(a) any amounts received by the FCA by virtue of this article are to be treated as amounts received by way of penalties imposed under the Act;

(b) any expenses incurred by the FCA in connection with the recovery of penalties due to it by virtue of this article are to be treated as incurred in connection with the recovery of penalties imposed under the Act.

Civil penalties – where no formal action taken before 1st April 2014

47

(1) Paragraphs (2) to (6) apply if—

(a) the FCA is satisfied that a person (“A”) had, before 1st April 2014, failed to comply with a requirement imposed on A under section 33A, 33B or 36A of the 1974 Act , and

(b) the OFT had not, before 1st April 2014, given a notice under section 39B(1) of the 1974 Act to A that the OFT was minded to impose a penalty on A under section 39A of the 1974 Act.

(2) The FCA may impose a penalty, in respect of the failure, on A under section 206 of the Act (financial penalties) .

(3) For the purposes of this article, each reference in Part 14 of the Act and any provision made under Part 14 of the Act to an “authorised person” is to be treated as including a reference to A.

(4) In determining what if any financial penalty to impose on A, the FCA must have regard to—

(a) any penalty or fine that has been imposed on A by another body in relation to the conduct giving rise to the possible imposition of the penalty;

(b) other steps the OFT or FCA has taken, or the FCA might take, in relation to that conduct;

(c) the statement of policy prepared by the OFT under section 39C of the 1974 Act as most recently published at the time the conduct occurred.

(5) The financial penalty imposed on A by the FCA in relation to each failure to comply with a requirement may not exceed £50,000.

(6) Section 210 of the Act (statement of policy) does not apply to a penalty imposed by the FCA by virtue of this article.

Enforcement of agreements made by unlicensed trader

48

(1) This article applies to a regulated agreement entered into before 1st April 2014 (“a relevant agreement”).

(2) A relevant agreement is not enforceable against the debtor or hirer by a person carrying on a regulated activity of the kind specified by article 60B(2) or 60N(2) of the Regulated Activities Order (as the case may be) if that person does not have permission to carry on that activity.

(3) Section 40(1A) and (2) of the 1974 Act continue to apply to a relevant agreement with the following modifications—

(a) after “Unless the OFT has” insert “ before 1st April 2014 ”;

(b) after “applies to the agreement” insert “ or the FCA has given a notice under section 28A of the Financial Services and Markets Act 2000 by virtue of subsection (1B) ”;

(1B) Sections 28A and 28B of the Financial Services and Markets Act 2000 apply to a regulated agreement which is not enforceable by virtue of subsection (1A) with the following modifications— (a) subsections (1) and (2) and paragraph (b) of subsection (3) of section 28A do not apply; (b) for subsections (4) to (6) of section 28A substitute— (4) In considering whether to allow the agreement to be enforced the FCA must have regard to whether the relevant firm reasonably believed that a licence under the Consumer Credit Act 1974 was not required by the creditor or owner (as the case may be) to enter into the agreement. (c) for subsection (8) of section 28A substitute— (8) “The relevant firm” means the person who (disregarding the effect of section 40(1A) of the Consumer Credit Act 1974), would be entitled to enforce the agreement.

Offences committed under the 1974 Act before 1st April 2014

49

Section 402(1) of the Act (power of FCA to institute proceedings for certain offences) applies as if it included a reference to offences committed under the 1974 Act before 1st April 2014.

Information and investigation powers

50

(1) Section 165 of the Act (regulators' power to require information) has effect as if each reference to “authorised person” (except in subsection (7)) included a reference to a person who at any time held a standard licence under the 1974 Act.

(2) Section 168 of the Act (appointment of persons to carry out investigations in particular cases) applies as if—

(a) subsection (1) included a reference to an offence under the 1974 Act;

(b) subsection (4) included a reference to circumstances suggesting that a person may have, before 1st April 2014, failed to comply with a requirement imposed on that person under section 33A, 33B or 36A of the 1974 Act.

(3) Part 27 of the Act (offences) applies as if references to an offence included references to an offence under Part 11 of the Act as modified by this Order.

Applications made to the OFT which have not been determined by 1st April 2014

51

(1) Any application which before 1st April 2014—

(a) had been made to the OFT under the 1974 Act, and

(b) had not been determined by the OFT,

is to be treated as having been made to the FCA, unless paragraph (2) applies.

(2) This paragraph applies if the application had been made under a provision of the 1974 Act which is repealed by this Order.

Decision notices

52

In relation to any notice which is, by virtue of this Chapter of this Part, to be treated as a decision notice given under the Act—

(a) it is immaterial whether the notice complies with section 388(1)(b) to (e) of the Act (decision notices) , and

(b) that section applies as if, for subsections (3) and (4), there were substituted—

(3) The regulator concerned may, before it takes the action to which a decision notice (“the original notice”) relates, give the person concerned a further decision notice. (4) A further decision notice given under subsection (3) may in particular— (a) relate to different action in respect of the same matter, or (b) vary the original notice.

Waivers

53

Any of the following given or made by the OFT which are in effect immediately before 1st April 2014 are to have effect as if they had been given or made by the FCA—

(a) a direction given under section 60(3) of the 1974 Act (form and content of agreements) ;

(b) a determination made under regulations made under section 64(4) of the 1974 Act (duty to give notice of cancellation rights) ;

(d) a direction given under section 160(1) of the 1974 Act (alternative procedure for business consumers) .

CHAPTER 3 — Appeals

Appeals – where steps taken before 1st April 2014

54

(1) Paragraphs (2) and (3) (in addition to provision made in Chapter 2) apply where a person (“A”) had, before 1st April 2014, submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3) (“a relevant appeal”).

(2) Sections 41 to 41ZB of the 1974 Act (appeals, Tribunal procedure rules and disposal of appeals) continue to apply to a relevant appeal (notwithstanding any repeal made by this Order) with the following modifications to section 41ZB—

(a) for each reference to the “OFT” substitute “ FCA ”;

(b) omit subsections (5) and (6).

(3) In any relevant appeal—

(a) anything done by the OFT before 1st April 2014 in relation to the appeal is to be treated as having been done by the FCA;

(b) the FCA is substituted for the OFT as a party to the appeal.

Appeals – where no steps taken before 1st April 2014

55

(1) Paragraphs (2) to (4) (in addition to provision made in Chapter 2) apply where a person (“A”) had, before 1st April 2014, a right to submit a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act but had not exercised that right before that date.

(2) A may refer the matter to the Tribunal within the specified period.

(3) Section 133 of the Act (proceedings before Tribunal: general provision) applies to any such reference as if it were a disciplinary reference (within the meaning of that section).

(4) In this article, “specified period” has the same meaning as in the 1974 Act.

CHAPTER 4 — Permission etc.

Interim permission

56

(1) Unless paragraph (12) applies, on and after 1st April 2014, any relevant person (“P”) who, immediately before that date, held a standard licence under the 1974 Act is to be treated as having an interim permission to carry on—

(a) if P's licence covered the carrying on of an ancillary credit business in so far as it comprised or related to credit brokerage (within the meaning of the 1974 Act), the regulated activity specified in article 36A of the Regulated Activities Order (credit broking) and article 64 of that Order in so far as relevant to that activity;

(b) if—

(i) P's licence covered the carrying on of an ancillary credit business in so far as it comprised or related to the activity of debt-administration (within the meaning of the 1974 Act),

(ii) immediately before 1st April 2014, P carried on an activity which, if carried on after that date would be an activity of the kind specified by article 36H of the Regulated Activities Order (operating an electronic system in relation to lending), and

(iii) immediately before 1st April 2014, P did not also carry on an activity which, if carried on after that date, would be an activity of the kind specified by article 39G of that Order (debt administration),

the regulated activity specified in article 36H of the Regulated Activities Order and article 64 of that Order in so far as relevant to that activity;

(i) P's licence covered the carrying on of an ancillary credit business in so far as it comprised or related to the activity of debt-administration (within the meaning of the 1974 Act),

(ii) immediately before 1st April 2014, P carried on an activity which, if carried on after that date would be an activity of the kind specified by article 36H of the Regulated Activities Order (operating an electronic system in relation to lending), and

(iii) immediately before that date, P also carried on an activity which, if carried on after that date, would be an activity of the kind specified by article 39G of that Order (debt administration),

the regulated activities specified in articles 36H and 39G of the Regulated Activities Order and article 64 of that Order in so far as relevant to those activities;

(d) to the extent that P's licence covers any other activities, those regulated activities which are activities which were described in the licence and article 64 of that Order in so far as relevant to those activities.

(2) On and after 1st April 2014, any relevant person (“P”) who, immediately before that date—

(a) held a standard licence under the 1974 Act,

(b) was a credit intermediary (within the meaning given by section 160A of the 1974 Act ), but

(c) did not carry on an activity which, if carried on after 1st April 2014, would be an activity of the kind specified by article 36H of the Regulated Activities Order,

is to be treated as having an interim permission to carry on regulated activities of the kind specified by articles 36A(1)(d) to (f) of the Regulated Activities Order to the extent that P was carrying on such activities immediately before 1st April 2014 and article 64 of that Order in so far as relevant to that activity; and such interim permission may be in addition to any interim permission the person obtains by virtue of paragraph (1).

(2A) On and after the relevant date, any relevant person (“P”) is to be treated as having an interim permission to carry on relevant mortgage activity.

(2B) For the purposes of paragraph (2A)—

(a) a person is a “relevant person” if—

(i) the person is a housing authority within the meaning of article 60E of the Regulated Activities Order,

(ii) the person has notified the FCA before 1st April 2016 that the person wishes to obtain an interim permission under paragraph (2A) to carry on relevant mortgage activity,

(iii) immediately before 1st April 2014 the person carried on an activity which would be relevant mortgage activity if carried on on or after that date, and held a standard licence under the 1974 Act covering such activity,

(iv) immediately before 20th March 2016 the person did not hold an interim permission to carry on relevant mortgage activity, and

(v) the person did not previously obtain interim permission to carry on relevant mortgage activity under this article, or the person did obtain such an interim permission and the FCA did not cancel such permission or vary the permission by removing relevant mortgage activity from the activities to which the interim permission related, otherwise than on an application by the person;

(b) “the relevant date” means the later of—

(i) the date on which a person notifies the FCA that the person wishes to obtain an interim permission under paragraph (2A), or

(ii) 20th March 2016.

(2C) A person is to be treated as having notified the FCA that the person wishes to obtain an interim permission under paragraph (2A) to carry on relevant mortgage activity only if the notice has been given in writing and includes—

(a) the person’s name and address,

(b) the number of the person’s licence under the 1974 Act, and

(2D) For the purposes of paragraphs (2A) to (2C), “relevant mortgage activity” means activity of the kind specified by article 60B(2) of the Regulated Activities Order (exercising, or having the right to exercise the lender’s rights and duties under a regulated credit agreement) in relation to agreements entered into before 1st April 2014 which, if entered into on or after 20th March 2016, would be exempt agreements pursuant to article 60E(5) of the Regulated Activities Order (mortgage lending by housing authorities).

(2E) Section 347 of the Act (the record of authorised persons etc.) does not apply in relation to a person who appears to the FCA to be an authorised person only by virtue of an interim permission obtained under paragraph (2A), but this does not prevent the FCA from maintaining a record of such persons.

(3) On and after the relevant date, any relevant person (“P”) who is a local authority is to be treated as having an interim permission to carry on regulated activities of the kind specified by article 60B (regulated credit agreements) which are activities which P was carrying on at any point in the period of one year ending on 1st April 2014.

(3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) For the purposes of paragraphs (1) and (2), P is a “relevant person” if P has, in the period beginning with 2nd September 2013 and ending on 31st March 2014 (including both days), notified the FCA of P's desire to obtain interim permission under this article and paid any fee which is provided for in rules made by the FCA for this purpose.

(4A) For the purposes of paragraph (3)—

(a) P is a “relevant person” if P has, in the period beginning with 2nd September 2013 and ending on 30th September 2014 (including both days), notified the FCA of P’s desire to obtain interim permission under this article and paid any fee which is provided for in rules made by the FCA for this purpose;

(b) “the relevant date” means the day after the later of—

(i) the day on which the local authority becomes a relevant person, and

(ii) 31st March 2014;

(c) there is to be disregarded any activity carried on by P in the period of one year ending on 1st April 2014 in so far as it relates to an agreement secured on land.

(5) On and after the notice date (see paragraph (7)), a relevant recent licensee (“P”) is to be treated as having an interim permission to carry on—

(a) if P's licence covered the carrying on of an ancillary credit business in so far as it comprised or related to credit brokerage (within the meaning of the 1974 Act), the regulated activity specified in article 36A of the Regulated Activities Order (credit broking) and article 64 of that Order in so far as relevant to that activity;

(b) if—

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The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013

The Financial Services and Markets Act 2000 (Ombudsman Scheme) (Consumer Credit Jurisdiction) Order 2007

18

The Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009

19

PART 5 — Amendments of the Consumer Credit Act 1974 etc.

Amendments of the 1974 Act

20

PART 6 — Amendments to secondary legislation made under the 1974 Act

Revocation of secondary legislation made under the 1974 Act

21

Saving provision related to article 21

22

The Consumer Credit (Agreements) Regulations 1983

23

The Consumer Credit (Early Settlement) Regulations 2004

24

The Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007

25

The Consumer Credit (Disclosure of Information) Regulations 2010

26

The Consumer Credit (Agreements) Regulations 2010

27

PART 7 — Consequential amendments and transitional provisions

Consequential amendments to other legislation etc.

28

PART 8 — Transitional provisions

CHAPTER 1 — Interpretation

Interpretation of Part 8

29

CHAPTER 2 — Licensing etc.

Meaning of “relevant person” in Chapter 2

30

Applications for a standard licence where no determination made before 1st April 2014

31

Applications for a standard licence where determination has been made but appeal period has not ended

32

Variation of licence at request of licensee where no determination made before 1st April 2014

33

Variation of licence at request of licensee where determination has been made but appeal period has not ended

34

Compulsory variation of a licence where no determination to vary made before 1st April 2014

35

Compulsory variation of a licence where determination to vary made before 1st April 2014

36

Revocation etc. of licence where no determination made before 1st April 2014

37

Revocation etc. of licence where determination made before 1st April 2014

38

Suspension of licence where determination made before 1st April 2014 but not confirmed

39

Suspension of licence where determination made before 1st April 2014 and confirmed

40

Imposition of requirements etc. where no determination made before 1st April 2014

41

Imposition of requirements etc. where determination made but appeal period has not ended

42

Failure to comply with information requirement

43

Civil penalties – where no determination made before 1st April 2014

44

Civil penalties – where determination made but appeal period has not ended

45

Civil penalties – where determination made before 1st April 2014 and penalty due

46

Civil penalties – where no formal action taken before 1st April 2014

47

Enforcement of agreements made by unlicensed trader

48

Offences committed under the 1974 Act before 1st April 2014

49

Information and investigation powers

50

Applications made to the OFT which have not been determined by 1st April 2014

51

Decision notices

52

Waivers

53

CHAPTER 3 — Appeals