Office of Public Sector Information
(2) Subsection (3) applies where—
(a) a consumer credit EEA firm makes an application for a standard licence; and
(b) some (but not all) of the activities covered by the application are permitted activities.
(3) In order to be entitled to be issued with a standard licence in accordance with section 25(1) to (1AB) in relation to a type of business, the firm need not satisfy the OFT that it is a fit person to carry on that type of business so far as it would involve any of the permitted activities covered by the application.
(4) A standard licence held by a consumer credit EEA firm does not at any time authorise the carrying on of an activity which is a permitted activity at that time.
(5) In this section ‘permitted activity’ means, in relation to a consumer credit EEA firm, an activity for which the firm has, or could obtain, permission under paragraph 15 of Schedule 3 to the Financial Services and Markets Act 2000.”
(6) In the Table in section 41 of that Act (appeals) in the entry relating to “refusal to make order under section 40(2) in accordance with terms of application” after “40(2)” insert “, 148(2) or 149(2)”.
(7) In sections 194(3) and 203(4) of the 2000 Act (powers of intervention and prohibition) for “(a) to (d) of section 25(2)” substitute “(a) to (e) of section 25(2A)”.
(8) In section 203(10) of that Act (definitions relating to Consumer Credit Act businesses) in the definition of “associate” for “25(2)” substitute “25(2A)”.
(9) In paragraph 15(3) of Schedule 3 to that Act (EEA passport rights) for “21, 39(1) and 147(1)” substitute “21 and 39(1)”.
(10) In paragraph 23 of that Schedule in sub-paragraph (1) for “Sub-paragraph (2) applies” substitute “Sub-paragraphs (2) and (2A) apply”.
(11) In sub-paragraph (2) of that paragraph for “(a) to (d) of section 25(2)” substitute “(a) to (e) of section 25(2A)”.
(12) After that sub-paragraph insert—
“(2A) The Authority may also exercise its power under section 45 in respect of the firm if the Office of Fair Trading has informed the Authority that it has concerns about any of the following—
(a) the firm’s skills, knowledge and experience in relation to Consumer Credit Act businesses;
(b) such skills, knowledge and experience of other persons who are participating in any Consumer Credit Act business being carried on by the firm;
(c) practices and procedures that the firm is implementing in connection with any such business.”
(1) In subsection (1) of section 22 of the 1974 Act (definitions of standard and group licences)—
(a) in paragraph (a) for “during the prescribed period” substitute “whilst the licence is in effect”;
(b) in paragraph (b) for the words from “during” to “indefinitely” substitute “whilst the licence is in effect”.
(2) After that subsection insert—
“(1A) The terms of a licence shall specify—
(a) whether it has effect indefinitely or only for a limited period; and
(b) if it has effect for a limited period, that period.
(1B) For the purposes of subsection (1A)(b) the period specified shall be such period not exceeding the prescribed period as the OFT thinks fit (subject to subsection (1E)).
(1C) A standard licence shall have effect indefinitely unless—
(a) the application for its issue requests that it have effect for a limited period only; or
(b) the OFT otherwise thinks there is good reason why it should have effect for such a period only.
(1D) A group licence shall have effect for a limited period only unless the OFT thinks there is good reason why it should have effect indefinitely.
(1E) Where a licence which has effect indefinitely is to be varied under section 30 or 31 for the purpose of limiting the licence’s duration, the variation shall provide for the licence to expire—
(a) in the case of a variation under section 30, at the end of such period from the time of the variation as is set out in the application for the variation; or
(b) in the case of a variation under section 31, at the end of such period from the time of the variation as the OFT thinks fit;
but a period mentioned in paragraph (a) or (b) shall not exceed the prescribed period.”
(3) In section 29 of that Act (renewal of licences)—
(a) in subsection (1) after “standard licence” insert “of limited duration”;
(b) in subsection (4) for “in force” substitute “to have effect”.
(4) In subsection (1) of section 31 of that Act (compulsory variation of licences) after “that time” insert “(assuming, in the case of a licence which has effect indefinitely, that it were a licence of limited duration)”.
(5) Before subsection (2) of that section insert—
“(1B) The OFT shall also proceed as follows if, having regard to section 22(1B) to (1E), it is of the opinion—
(a) that a licence which has effect indefinitely should have its duration limited; or
(b) in the case of a licence of limited duration, that the period during which it has effect should be shortened.”
(6) In section 32(1) of that Act (suspension and revocation of licences) after “that time” insert “(assuming, in the case of a licence which has effect indefinitely, that it were a licence of limited duration)”.
(7) In section 35(1)(b) of that Act (particulars to be kept in register maintained by OFT) for “force” substitute “effect”.
(8) In section 37 of that Act (circumstances giving rise to termination of a licence) after subsection (1) insert—
“(1A) A licence terminates if the licensee gives the OFT a notice under subsection (1B).
(1B) A notice under this subsection shall—
(a) be in such form as the OFT may by general notice specify;
(b) contain such information as may be so specified;
(c) be accompanied by the licence or give reasons as to why it is not accompanied by the licence; and
(d) be signed by or on behalf of the licensee.”
(9) In subsection (3)(a) of that section after “(1)” insert “or (1A)”.
After section 28 of the 1974 Act insert—
(1) The licensee under a standard licence which has effect indefinitely shall, before the end of each payment period of his, pay the OFT a charge towards the costs of carrying out its functions under this Act.
(2) The original applicant for a group licence which has effect indefinitely shall, before the end of each payment period of his, pay the OFT such a charge.
(3) The amount of the charge payable by a person under subsection (1) or (2) before the end of a payment period shall be determined in accordance with provision which—
(a) is made by the OFT by general notice; and
(b) is current on such day as may be determined in accordance with provision made by regulations.
(4) The provision that may be made by the OFT under subsection (3)(a) includes—
(a) different provision in relation to persons of different descriptions (including persons whose payment periods end at different times);
(b) provision for no charge at all to be payable by persons of specified descriptions.
(5) The approval of the Secretary of State and the Treasury is required for a general notice under subsection (3)(a).
(6) For the purposes of this section a person’s payment periods are to be determined in accordance with provision made by regulations.”
After section 28A of the 1974 Act (inserted by section 35 of this Act) insert—
(1) A person who is required under section 28A to pay a charge before the end of a period may apply once to the OFT for that period to be extended.
(2) The application shall be made before such day as may be determined in accordance with provision made by the OFT by general notice.
(3) If the OFT is satisfied that there is a good reason—
(a) why the applicant has not paid that charge prior to his making of the application, and
(b) why he cannot pay that charge before the end of that period,
it may, if it thinks fit, by notice to him extend that period by such time as it thinks fit having regard to that reason.
(4) The power of the OFT under this section to extend a period in relation to a charge—
(a) includes the power to extend the period in relation to a part of the charge only;
(b) may be exercised even though the period has ended.”
(1) After section 28B of the 1974 Act (inserted by section 36 of this Act) insert—
(1) This section applies if a person (the ‘defaulter’) fails to pay a charge—
(a) before the end of a period (the ‘payment period’) as required under section 28A; or
(b) where the payment period is extended under section 28B, before the end of the payment period as extended (subject to subsection (2)).
(2) Where the payment period is extended under section 28B in relation to a part of the charge only, this section applies if the defaulter fails—
(a) to pay so much of the charge as is not covered by the extension before the end of the payment period disregarding the extension; or
(b) to pay so much of the charge as is covered by the extension before the end of the payment period as extended.
(3) Subject to subsection (4), if the charge is a charge under section 28A(1), the defaulter’s licence terminates.
(4) If the defaulter has applied to the OFT under section 28B for the payment period to be extended and that application has not been determined—
(a) his licence shall not terminate before the application has been determined and the OFT has notified him of the determination; and
(b) if the OFT extends the payment period on that application, this section shall have effect accordingly.
(5) If the charge is a charge under section 28A(2), the charge shall be recoverable by the OFT.”
(2) In section 35(1)(b) of that Act (particulars to be kept in register maintained by OFT) after “revoked” insert “or terminated by section 28C”.
After section 33 of the 1974 Act insert—
(1) This section applies where the OFT is dissatisfied with any matter in connection with—
(a) a business being carried on, or which has been carried on, by a licensee or by an associate or a former associate of a licensee;
(b) a proposal to carry on a business which has been made by a licensee or by an associate or a former associate of a licensee; or
(c) any conduct not covered by paragraph (a) or (b) of a licensee or of an associate or a former associate of a licensee.
(2) The OFT may by notice to the licensee require him to do or not to do (or to cease doing) anything specified in the notice for purposes connected with—
(a) addressing the matter with which the OFT is dissatisfied; or
(b) securing that matters of the same or a similar kind do not arise.
(3) A requirement imposed under this section on a licensee shall only relate to a business which the licensee is carrying on, or is proposing to carry on, under the licence under which he is a licensee.
(4) Such a requirement may be framed by reference to a named person other than the licensee.
(5) For the purposes of subsection (1) it is immaterial whether the matter with which the OFT is dissatisfied arose before or after the licensee became a licensee.
(6) If—
(a) a person makes an application for a standard licence, and
(b) while dealing with that application the OFT forms the opinion that, if such a licence were to be issued to that person, it would be minded to impose on him a requirement under this section,
the OFT may, before issuing such a licence to that person, do (in whole or in part) anything that it must do under section 33D or 34(1) or (2) in relation to the imposing of the requirement.
(7) In this section ‘associate’, in addition to the persons specified in section 184, includes a business associate.”
After section 33A of the 1974 Act (inserted by section 38 of this Act) insert—
(1) This section applies where the OFT is dissatisfied with the way in which a responsible person in relation to a group licence—
(a) is regulating or otherwise supervising, or has regulated or otherwise supervised, persons who are licensees under that licence; or
(b) is proposing to regulate or otherwise to supervise such persons.
(2) The OFT may by notice to the responsible person require him to do or not to do (or to cease doing) anything specified in the notice for purposes connected with—
(a) addressing the matters giving rise to the OFT’s dissatisfaction; or
(b) securing that matters of the same or a similar kind do not arise.
(3) A requirement imposed under this section on a responsible person in relation to a group licence shall only relate to practices and procedures for regulating or otherwise supervising licensees under the licence in connection with their carrying on of businesses under the licence.
(4) For the purposes of subsection (1) it is immaterial whether the matters giving rise to the OFT’s dissatisfaction arose before or after the issue of the group licence in question.
(5) If—
(a) a person makes an application for a group licence, and
(b) while dealing with that application the OFT forms the opinion that, if such a licence were to be issued to that person, it would be minded to impose on him a requirement under this section,
the OFT may, before issuing such a licence to that person, do (in whole or in part) anything that it must do under section 33D or 34(1) or (2) in relation to the imposing of the requirement.
(6) For the purposes of this Part a person is a responsible person in relation to a group licence if—
(a) he is the original applicant for it; and
(b) he has a responsibility (whether by virtue of an enactment, an agreement or otherwise) for regulating or otherwise supervising persons who are licensees under the licence.”
After section 33B of the 1974 Act (inserted by section 39 of this Act) insert—
(1) A notice imposing a requirement under section 33A or 33B may include provision about the time at or by which, or the period during which, the requirement is to be complied with.
(2) A requirement imposed under section 33A or 33B shall not have effect after the licence by reference to which it is imposed has itself ceased to have effect.
(3) A person shall not be required under section 33A or 33B to compensate, or otherwise to make amends to, another person.
(4) The OFT may by notice to the person on whom a requirement has been imposed under section 33A or 33B vary or revoke the requirement (including any provision made under subsection (1) of this section in relation to it) with effect from such date as may be specified in the notice.
(5) The OFT may exercise its power under subsection (4) in relation to a requirement either on its own motion or on the application of a person falling within subsection (6) or (7) in relation to the requirement.
(6) A person falls within this subsection in relation to a requirement if he is the person on whom the requirement is imposed.
(7) A person falls within this subsection in relation to a requirement if—
(a) the requirement is imposed under section 33A;
(b) he is not the person on whom the requirement is imposed;
(c) the requirement is framed by reference to him by name; and
(d) the effect of the requirement is—
(i) to prevent him being an employee of the person on whom the requirement is imposed;
(ii) to restrict the activities that he may engage in as an employee of that person; or
(iii) otherwise to prevent him from doing something, or to restrict his doing something, in connection with a business being carried on by that person.”
After section 33C of the 1974 Act (inserted by section 40 of this Act) insert—
(1) Before making a determination—
(a) to impose a requirement on a person under section 33A or 33B,
(b) to refuse an application under section 33C(5) in relation to a requirement imposed under either of those sections, or
(c) to vary or to revoke a requirement so imposed,
the OFT shall proceed as follows.
(2) The OFT shall give a notice to every person to whom subsection (3) applies in relation to the determination—
(a) informing him, with reasons, that it is minded to make the determination; and
(b) inviting him to submit to it representations as to the determination under section 34.
(3) This subsection applies to a person in relation to the determination if he falls within, or as a consequence of the determination would fall within, section 33C(6) or (7) in relation to the requirement in question.
(4) This section does not require the OFT to give a notice to a person if the determination in question is in the same terms as a proposal made to the OFT by that person (whether as part of an application under this Part or otherwise).”
After section 33D of the 1974 Act (inserted by section 41 of this Act) insert—
(1) The OFT shall prepare and publish guidance in relation to how it exercises, or how it proposes to exercise, its powers under sections 33A to 33C.
(2) If the OFT revises the guidance at any time after it has been published, the OFT shall publish it as revised.
(3) The guidance shall be published in such manner as the OFT thinks fit for the purpose of bringing it to the attention of those likely to be affected by it.
(4) In preparing or revising the guidance the OFT shall consult such persons as it thinks fit.
(5) In exercising its powers under sections 33A to 33C the OFT shall have regard to the guidance as most recently published.”
(1) In section 35(1) of the 1974 Act (particulars to be kept in register maintained by OFT) after paragraph (b) insert—
“(ba) requirements imposed under section 33A or 33B which are in effect or which have been in effect, with details of any variation of such a requirement;”.
(2) In the Table in section 41 of that Act (appeals) after the entry relating to “refusal to end suspension of licence in accordance with terms of application” insert the following entry—
“Determination— (a)
to impose a requirement under section 33A or 33B; (b)
to refuse an application under section 33C(5) in relation to a requirement imposed under either of those sections; or (c)
to vary or revoke a requirement so imposed. |
A person who falls within section 33C(6) or (7) in relation to the requirement unless the OFT was not required to give a notice to him in relation to the determination by virtue of section 33D(4).” |
(1) In subsection (2) of section 6 of the 1974 Act (which contains provision relating to applications)—
(a) for “particulars” substitute “information and documents”;
(b) for “by” in the second place where it occurs substitute “or describe in a”.
(2) For subsection (3) of that section substitute—
“(3) Where the OFT receives an application, it may by notice to the applicant at any time before the determination of the application require him to provide such information or documents relevant to the application as may be specified or described in the notice.”
(3) After subsection (4) of that section insert—
“(5) Subsection (6) applies where a general notice under subsection (2) comes into effect—
(a) after an application has been made; but
(b) before its determination.
(6) The applicant shall, within such period as may be specified in the general notice, provide the OFT with any information or document—
(a) which he has not previously provided in relation to the application by virtue of this section;
(b) which he would have been required to provide with his application had it been made after the general notice came into effect; and
(c) which the general notice requires to be provided for the purposes of this subsection.
(7) An applicant shall notify the OFT, giving details, if before his application is determined—
(a) any information or document provided by him in relation to the application by virtue of this section is, to any extent, superseded or otherwise affected by a change in circumstances; or
(b) he becomes aware of an error in or omission from any such information or document.
(8) A notification for the purposes of subsection (7) shall be given within the period of 28 days beginning with the day on which (as the case may be)—
(a) the information or document is superseded;
(b) the change in circumstances occurs; or
(c) the applicant becomes aware of the error or omission.
(9) Subsection (7) does not require an applicant to notify the OFT about—
(a) anything of which he is required to notify it under section 36; or
(b) an error in or omission from any information or document which is a clerical error or omission not affecting the substance of the information or document.”
After section 36 of the 1974 Act insert—
(1) Subsections (2) to (4) apply where a general notice under section 6(2) comes into effect.
(2) A person who is the licensee under a standard licence or who is the original applicant for a group licence shall, in relation to each relevant application which he has made and which was determined before the general notice came into effect, provide the OFT with any information or document—
(a) which he would have been required to provide with the application had the application been made after the general notice came into effect; and
(b) which the general notice requires to be provided for the purposes of this subsection.
(3) Any such information or document shall be provided within such period as may be specified in the general notice.
(4) Subsection (2) does not require a person to provide any information or document—
(a) which he provided in relation to the application by virtue of section 6;
(b) which he has previously provided in relation to the application by virtue of this section; or
(c) which he would have been required to provide in relation to the application by virtue of subsection (5) but for subsection (6).
(5) A person who is the licensee under a standard licence or who is the original applicant for a group licence shall, in relation to each relevant application which he has made, notify the OFT giving details if, after the application is determined, any information or document which he—
(a) provided in relation to the application by virtue of section 6, or
(b) has so provided by virtue of this section,
is, to any extent, superseded or otherwise affected by a change in circumstances.
(6) Subsection (5) does not require a person to notify the OFT about a matter unless it falls within a description of matters specified by the OFT in a general notice.
Consumer Credit Act 2006