The Financial Conduct Authority is to consult on whether general counsel and other in-house lawyers in banks, building societies and credit unions fall within its new accountability regime for senior managers. The FCA said some general counsel were concerned about being forced to disclose privileged information.
The Ministry of Justice is considering transferring the regulation of claims management companies to the Financial Conduct Authority, it has emerged. The aim is to bring in a “much more rigorous regulatory regime for CMCs”.
The chair of the Solicitors Regulation Authority has said the end is in sight of its “long, long journey” on consumer credit after a last-minute deal with the Financial Conduct Authority.
The Solicitors Regulation Authority is set to continue regulating most consumer credit activities carried out by law firms after new proposals were issued last week. A consultation said solicitors would be able to carry out mainstream consumer credit activities as long as they are central to the legal services they provide.
The government has reduced the scope of regulation for law firms involved in consumer credit work, such as debt collection. It has also increased the ability of firms to offer payment by instalments.
What’s your favourite time of year? Mine is April, but not this year. Other are conspiring against me—the Solicitors Regulation Authority, the government, the Legal Services Board, the Legal Ombudsman, HM Treasury and even the European Commission.
The Legal Services Consumer Panel has thrown its weight behind the Solicitors Regulation Authority (SRA) in arguing that it should no longer regulate consumer credit work.
The Solicitors Regulation Authority has said it may have to stop regulating consumer credit work, such as debt collection, from next April. The regulator said it was aware that around 1,100 firms were involved in debt collection.
The Solicitors Regulation Authority and Financial Conduct Authority have agreed that transitional arrangements for firms wanting to carry out consumer credit activities will be extended by a further six months, from 30 September 2014 to 1 April 2015.
There is a “real risk” that law firms do not understand how impending changes to the consumer credit regime could have a serious effect on them – such as needing to be additionally regulated by the Financial Conduct Authority – the Legal Services Board has warned.