Such withdrawal would have required firms to seek authorisation from the FCA to continue carrying out this type of work as mainstream activities from October this year (i.e. in a way which brings the activity outside the “ incidental activities exemption” for professional firms-on which more below).
However, undoubtedly in response to this, a proposed amendment to the Regulated Activities Order (“the RAO”) (which brings consumer credit activities within the FCA’s regulatory remit) will extend the definition of the exclusion which relates to firms carrying out certain consumer credit activities involving litigation. At present there has been doubt about whether pre litigation activity falls within this exclusion, as the exclusion is expressed to cover “contentious business”.
This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.