News release

One week left to have your say on consumer credit

There's just a week left to have a say in the Solicitors Regulation Authority (SRA) consultation on proposals for the regulation of solicitors and consumer credit work.

The consultation closes next Friday (7 August). Anyone wanting to comment can read the consultation document below and respond as directed.

Go to the consultation document

The SRA has put forward proposals that would enable solicitors to carry out certain consumer credit activities as long as they are central to the legal services they provide. They would also ensure that law firms are not over-burdened with additional rules, and that client protections remain in place.

The SRA has been working with the Financial Conduct Authority (FCA) over the last 12 months to identify the best way to approach the regulation of solicitors providing these services. This follows the transfer of the responsibility for regulating consumer credit work from the Office of Fair Trading to the FCA on 1 April 2014.

SRA authorised firms that mainly carry out consumer credit activities already require FCA regulation. The changes mean firms may now also require authorisation by the FCA if they undertake prohibited activities that are not considered central to their legal services practice. These activities are listed in the SRA consultation document.

The SRA held a webinar to give those affected the opportunity to hear current thinking and discuss any issues. The is available here:

Following the consultation, final recommendations on the regulatory approach are set to be presented at the September SRA Board meeting.