Requirements

The exact requirements that need to be met by an individual firm will depend on their specific consumer credit activities and their FCA authorisation status.

See the ‘FCA interim permission and authorisation' module for more information. 

Beyond the principles of the FCA regime, the Consumer Credit Sourcebook (see also ‘Changes to consumer credit regulation' module) sets out the specific Rules and Guidance which the FCA expects firms carrying out consumer credit activities to follow. The distinction between Rules and Guidance in CONC is important for firms as the FCA will fully enforce its Rules, while firms have some discretion to interpret Guidance provided it is in accordance with the FCA's Principles and the spirit of the regulatory regime.

In addition, the FCA will conduct regular Market Studies and Thematic Reviews which will examine in detail particular products or markets as a whole. For example, in 2013/14 the FCA conducted a Market Study on General Insurance Add-On products. This included reviewing how GAP (Guaranteed Asset Protection) insurance was sold to consumers in motor dealerships.