HM Treasury believes consumer credit should be brought into the same regulatory regime as other retail financial services under the CPMA. It said this will improve consumer credit regulation, creating stronger protection for consumers and removing regulatory duplication and burdens on business.
In addition, it will address anomalies that currently result in similar products being regulated under different regimes.
The Financial Secretary to the Treasury, Mark Hoban, and the Minister for Consumer Affairs, Edward Davey, launched the consultation report today.
Hoban said: “The government is already delivering on its commitment to reform financial regulation, to avoid repeating the mistakes of the recent crisis.
“This is an excellent opportunity to bring the OFT’s consumer credit regulation within the CPMA, creating a single regulator for retail financial services, with a single point of contact for business and consumers.”
However, he added: “We do not underestimate the magnitude and complexity of such a reform, and recognise that any new regime must be flexible and proportionate, reflecting the diverse nature of the sector.
“We are committed to ensuring that the decision on bringing consumer credit into the scope of CPMA regulation reflects the needs of consumers and businesses, and to extensive engagement and consultation on this issue.”
