Stephen Sklaroff, director general of the Finance & Leasing Association (FLA) has said there are "few surprises" in the publication of the initial rulebook of the Financial Conduct Authority, but urged those in the car finance industry to check their credit licences.
Speaking to Motor Finance, Sklaroff welcomed the amendments from the original plans for the FCA, for which he credited the FLA’s "close dialogue" with the Authority.
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The FCA, which replaced the Financial Services Authority (FSA), will takeover regulation of consumer credit from the Office of Fair Trading (OFT) as of 1 April 2014.
Similar to Andy Gruber of Alphera Financial Services, Sklaroff also reminded "anybody" in car finance – lenders, intermediaries or otherwise – to check they hold the correct categories of OFT credit licence which is used to gain an Interim Permission to supply credit under the FCA from April.
Practicalities of change
Sklaroff said he was "pleased" the FCA had also considered the "practicalities of change" and offered the example of full authorisation. Originally, full authorisation for companies under the Authority would not be granted until autumn 2014 but the FLA raised a concern this may cause problems for the industry, and now companies can have "full authorisation from the get-go" in April.
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By GlobalDataHe also acknowledge the FCA has "looked at" and "lightened" proposed regulatory burdens, including "clearly reducing some requirements" such as not asking for data reporting until full authorisation.
Also, formerly, credit providers’ customer-facing documentation and websites would have had to change twice, at the interim and full stages of regulatory approval; now customer-facing literature will only have to change once when regulation is confirmed by the FCA.
In addition, the Authority has changed its advertising advice, which Sklaroff felt brought it more in line with the previous FSA incarnation and which has had its most prominent affect with payday lenders.
The next demand of the FLA, said the director general, was the "need to track through theses things" and ensure the FCA is doing as it has proposed.
The FLA will support members during the interim period by continuing to report on FCA proposals, holding regular meetings of its Regulatory Reform Group (made up of 50-60 Association members) and other committees looking at the details of the Authority, and hosting a conference on the FCA on 5 November at the British Library in London.
Further comment and analysis regarding the FCA, rulebook and interim period will be published in the October issue of Motor Finance magazine.
