– Other companies covered – Exercise: Who is affected and to what extent? CONC 2.4 (credit references: business structure: lender and owner); Agreements secured by a second or subsequent charge at the customer`s home will be governed by the MCOB as of March 21, 2016 (subject to transitional provisions allowing for early introduction of the BOMC). Detailed information on the regulation of secured loans can be found in PERG 4. – The most important rules- Never suggest that loans are available unconditionally- A decision in seconds – Really?- Follow the rules- Exercise: Unfair commercial practices- Misleading introductions- Exercise: Payday loan advertising- Payday loan risk warnings The CONC and its associated rules will apply proportionately, so that any business engaged in regulated credit-related activities will have to assess how the FCA regulates its respective activities and must be able to comply within the short transitional periods. Smarsh, Inc. assumes no responsibility for the accuracy or completeness of this information. Please consult an attorney for specific information about specific rules and regulations and how they apply to your business. – Risk warnings and standard information- Provision of adequate explanations- Preliminary contract: Unfair business practices Principle 1 (a company must conduct its business with integrity); This section applies to a consumer credit business. CONC 6.8 (Post-contractual commercial practices: credit intermediaries). The declaration referred to in point 7 shall be made in the form and content set out in the CONC 1 application for the exemption in respect of companies. The document also states that companies should be notified by May 1 of when they should apply for full approval. A company must submit an application within three months of this date, otherwise it will lose its provisional licence.
FCA will seek to give groups the same deadline to apply and allow an earlier window for companies that have said they want to become directors for the designated representative companies. The FCA also notes that new applicants and firms wishing to engage in activities in addition to those covered by its provisional approval will be able to apply from 1 April. This rule does not apply to credit card checks provided under a credit token agreement entered into by the Customer in whole or primarily for the purposes of a business operated or intended to be operated by the Customer. CONC 5.4 (rules of conduct: credit intermediaries), and the reference in that rule to credit intermediation includes a reference to advice on regulated credit agreements for the acquisition of land; and brokering in relation to the above-mentioned agreements may be credit intermediation under Article 36A of the Regulated Activities Regulation, whether the agreement is regulated or exempt. There are also other secured credit agreements which are exempted but whose intermediation may still constitute credit intermediation, as certain exceptions to Article 36a of the Regulated Activities Regulation are not taken into account. An example is a loan of more than £25,000 taken out wholly or mainly for the purposes of a borrower`s business and secured by a second or subsequent charge on the borrower`s home: such a loan is not a regulated mortgage contract as it is a second-debit commercial loan (within the meaning of section 61A of the Regulated Activities Regulation). and is an exemption agreement within the meaning of Article 60c(3) of the Regulation on controlled activities; Article 36a(4)(a) of the Regulation on controlled activities does not take this exception into account. Although the CONC does not apply directly to the appointed representatives of a company, an undertaking is always liable for the acts and omissions of its appointed representatives in the performance of the transactions for which it has assumed responsibility (Article 39(3) of the Law). In determining whether a company has complied with a provision of the CCA, any act or omission by a company`s designated official (if acting in that capacity) is considered to be done or omitted by the firm (subsection 39(4) of the Act). – Ensure business practices are fair – Exercise: Jack`s arrears Regulated credit-related activities include consumer credit, credit intermediation, debt counselling, debt settlement, debt management, debt collection, provision of credit information services, provision of credit references, the operation of an electronic lending system (but except in FEES and SEA only to the extent that it relates to a borrower or potential borrowers under a P2P agreement)1 and the hiring of consumers.