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

London Solicitors Litigation Association—John McElroy

London Solicitors Litigation Association—John McElroy

Fieldfisher partner appointed president as LSLA marks milestone year

Kingsley Napley—Kirsty Churm & Olivia Stiles

Kingsley Napley—Kirsty Churm & Olivia Stiles

Firm promotes two lawyers to partnership across employment and family

Foot Anstey—five promotions

Foot Anstey—five promotions

Firm promotes five lawyers to partnership across key growth areas

NEWS
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Thousands more magistrates are to be recruited, under a major shake-up to speed up and expand the hiring process
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
back-to-top-scroll