SRA's new consumer credit regulation receives LSB approval

The Solicitors Regulation Authority's (SRA) new approach to consumer credit regulation has received its final approval from the Legal Services Board (LSB).

The latest model will allow the SRA to undertake consumer credit regulation for firms if their work is integral to the legal services provided.

This means some firms could avoid the burdensome dual-regulation by both the Financial Conduct Authority (FCA) and SRA, while ensuring client protections.

The SRA and FCA have been in talks throughout 2015 to minimise regulation of consumer credit activities and the number of regulators firms must deal with.

Some firms will still require FCA regulation and are being reminded to assess whether they will need to apply for dual regulation before the changes come into effect on 1 April 2016.

Crispin Passmore, the SRA's executive director of policy, said: 'We have worked closely with the FCA to produce proposals that offer a balanced and proportionate approach to regulation.

'These proposals are good news for firms and their clients alike and are part of our ongoing work to simplify and streamline our regulatory approach.'

The SRA is also developing an online toolkit to help firms understand the regulatory requirements for providing consumer credit services.

Matthew Rogers is an editorial assistant at Solicitors Journalmatthew.rogers@solicitorsjournal.co.uk | @sportslawmatt