header-logo header-logo

16 October 2014
Issue: 7626 / Categories: Legal News
printer mail-detail

FCA authorisation risk

Family lawyers who advise clients on the financial aspects of their divorces, and firms involved in debt recovery work, may have to be authorised by the Financial Conduct Authority (FCA) in future.

The Solicitors Regulation Authority (SRA) says it is aware of more than 1,100 firms that carry out debt recovery, one area of consumer credit work. Solicitors could require FCA authorisation if they discuss finance with a divorce client and negotiate terms with creditors on behalf of that client for settlement of a joint debt. A solicitor advising on a property deal who seeks to amend information held by a credit information agency about their client’s financial standing would also be caught.

Authorisation became an issue on 1 April, when regulation for consumer credit work passed from the Office of Fair Trading to the FCA. Previously, solicitors were regulated under a group licence managed by the SRA. However, the FCA has not continued this arrangement, and transitional arrangements are due to run out on 1 April 2015.

Firms could then rely on an exemption which allows them to be overseen by a “designated professional body”—the SRA, in this case. However, the SRA is reluctant to adopt the required parts of the FCA’s sourcebook, called CONC.

Crispin Passmore, SRA executive director for policy, says: “It is vital that clients receive the proper protections, and the FCA are much better placed to regulate these activities than we are.”

An SRA consultation on the issue runs until 15 December 2014.

Issue: 7626 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
back-to-top-scroll