62.—(1) This article applies to rules made by the PRA which relate to credit-related regulated activities or the carrying on of those activities.
(2) Section 138J(2)(a) of the Act (cost benefit analysis) does not apply in relation to a draft of rules to which this article applies which are the same as, or substantially the same as, any of the Consumer Credit Act provisions or which have the same, or substantially the same, effect as any such provisions.
(3) For the purposes of this article, the “Consumer Credit Act provisions” are—
(a)the Consumer Credit Act 1974,
(b)any subordinate legislation made, or guidance issued, under that Act, and
(c)any notice issued by the OFT under section 86A of that Act M1 (information sheets on arrears and defaults),
disregarding the effect of article 20 (amendments of the Consumer Credit Act 1974) and any order made before 1st April 2014 under section 107 of the Financial Services Act 2012.
(4) Section 138J of the Act (consultation by the PRA) is to apply as if for subsections (7) and (8) there were substituted—
“(7) “Cost benefit analysis” means—
(a)an analysis of the difference between the costs and benefits of the Consumer Credit Act provisions and the costs and benefits that will arise—
(i)if the proposed rules are made, or
(ii)if subsection (5) applies, from the rules that have been made, and
(b)subject to subsection (8), an estimate of that difference.
(7A) For the purposes of subsection (7), the “Consumer Credit Act provisions” are—
(a)the Consumer Credit Act 1974,
(b)any subordinate legislation made, or guidance issued, under that Act, and
(c)any notice issued by the OFT under section 86A of that Act (information sheets on arrears and defaults),
disregarding the effect of article 20 (amendments of the Consumer Credit Act 1974) of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 and any order made before 1st April 2014 under section 107 of the Financial Services Act 2012.
(8) If, in the opinion of the PRA—
(a)the difference referred to in subsection (7) cannot reasonably be estimated; or
(b)it is not reasonably practicable to produce an estimate,
the cost benefit analysis need not estimate the difference but must include a statement of the PRA's opinion and an explanation of it.”.
(5) The requirements of section 138J of the Act (as modified above) in so far as they apply to a proposal to make rules to which this article applies may be satisfied by things done (wholly or in part) before the date on which this article comes into force.
(6) For the purposes of paragraph (4)—
(a)it is immaterial if, when the things were done, they were not compatible with section 138J of the Act or, in the case of things done by the Financial Services Authority before 1st April 2013, section 155 of the Act;
(b)the requirements may be satisfied by things done by the Financial Services Authority.
(7) In this article, “” means the activities which will, from 1st April 2014, be regulated activities by virtue of Part 2 of this Order.
Marginal Citations
M1Inserted by the Consumer Credit Act 2006, section 8.