Consumer credit regulation passes next hurdle

The Financial Conduct Authority has approved the changes to our rules that will allow solicitors to carry out certain consumer credit activities under SRA authorisation where those activities are central to the legal services provided. The SRA has worked with the FCA over the last year to agree the best way to regulate consumer credit activities, aiming to keep to a minimum the level of regulation and number of regulators firms have to deal with.

The new approach would mean the majority of firms will not have to be regulated by both the FCA and SRA, reducing the burden on them while client protections remain in place. The proposal now needs final approval from the Legal Services Board.

Crispin Passmore, SRA Executive Director for Policy, said: "We have worked hard with the FCA to produce proposals that offer a balanced and proportionate approach to regulation. These proposals are good news for firms and their clients alike and continue our ongoing work of simplifying and streamlining our regulatory approach.

"We hope the LSB agrees with that view and approves the changes."

If the LSB agrees, the relevant changes to the SRA Handbook will come into effect on 1 April 2016.