(This note is not part of the Order)
This Order specifies additional activities which are to be treated as “regulated activities” for the purposes of the Financial Services and Markets Act 2000 (c.8) (“the Act”). The effect of this is that a person who carries on such an activity in the United Kingdom must be authorised under the Act to carry out the activities or an exempt person (see section 19 of the Act).
Part 2 of the Order specifies the new regulated activities. These are credit broking, operating an electronic system in relation to lending, debt adjusting, debt-counselling, debt-collecting, debt administration, entering into etc. a regulated credit agreement, entering into etc. a regulated consumer hire agreement, providing credit information services and providing credit references.
Part 3 of the Order amends the Act in connection with the new regulated activities provided for in Part 2. Part 3 also contains transitional provisions relating to those amendments. Part 3 also sets out requirements relating to information which certain persons who are not authorised persons who carry on credit broking must comply with.
Part 4 of the Order amends secondary legislation made under the Act.
Part 5 of the Order amends the Consumer Credit Act 1974 (c.39) (“the 1974 Act”). In particular, Part 5 of the Order repeals the provisions of the 1974 Act which relate to the licensing of consumer credit activities under the 1974 Act.
Part 6 of the Order amends secondary legislation made under the 1974 Act.
Part 7 of the Order introduces the Schedule to the Order which makes consequential amendments to other legislation and related transitional provision.
Part 8 contains transitional provisions.
Article 12 of this Order implements article 21 of Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EC.
A full impact assessment of the effect that this Order will have on the costs of business and the voluntary sector is available from Her Majesty's Treasury, 1 Horse Guards Road, London SW1A 2HQ or on www.hm-treasury.gov.uk and is published alongside the Order on www.legislation.gov.uk.