Status disclosure: consumer credit

Firms conducting credit-related regulated activities must provide customers with certain information explaining their regulatory status in certain documents and communications.

Statutory status disclosure requirements

Most firms are required to disclose their regulatory status in letters (and electronic equivalents) to customers.

Electronic equivalents include emails but not text messages.

For firms that are not authorised by the Prudential Regulation Authority (PRA), in most cases the wording should be: 'Authorised and regulated by the Financial Conduct Authority'. If your firm conducts both regulated and non-regulated business, it may be necessary to explain this to avoid misleading customers.

You must not:

• Indicate or imply that you are authorised by us in respect of business for which you are not authorised.
• Indicate or imply that you are regulated or supervised by us in respect of business for which you are not regulated by us.

Note: if you are a professional firm which benefits from the exemption from the general prohibition in section 327 of the Financial Services and Markets Act 2000 (FSMA), you must disclose in writing that you are not authorised under FSMA, before you provide a service including a regulated activity, with or for a client.

A different rule applies to those carrying on insurance meditation activities, see PROF 4.1.3R(2)[2] of the Handbook. You should also consider the disclosure rules of your professional body which will also set out material that needs to be disclosed about your regulated activities.

More information about our rules on status disclosure is in the Handbook in General Provisions (GEN) sourcebook[3], PROF 4.1[2]

Consumer credit regulation requirements

There are separate requirements on lenders under the Consumer Credit (Disclosure of Information) Regulations 2010 and the Consumer Credit (Agreements) Regulations 2010 to state the ‘supervisory authority’ in certain documentation:

• Credit agreements: you must include a statement specifying that the Financial Conduct Authority is the supervisory authority under the Consumer Credit Act 1974. For example, 'The Financial Conduct Authority, 12 Endeavour Square, London E20 1JN  is the supervisory authority under the Consumer Credit Act 1974'.        
• Pre-contract credit information (for distance contracts): you must include a statement of the relevant supervisory authority and your registration number (your firm reference number).

You should check the relevant regulations for further details.

These specific requirements do not apply to Deferred Payment Credit agreements as the Consumer Credit (Disclosure of Information) Regulations 2010 and the Consumer Credit (Agreements) Regulations 2010 do not apply to them.

Payment services regulation requirements

Firms which require authorisation under both FSMA and the PSRs should make a reference to both authorisations. 

• The requirement in the PSRs with respect to framework contracts and in respect of single payment transactions is to state the 'details of the payment service provider’s regulators including any reference number or registration number of the payment service provider', but the form of such disclosure is not prescribed under the PSRs. 
• In addition the FCA Approach Document notes that is important customers are made aware of the payment service provider's authorisation status - Annex 3 of our approach document to PSRs sets out suggested ways of complying with the status disclosure requirement in contracts and correspondence . For example, a firm could state: '[Name] is authorised and regulated by the Financial Conduct Authority, including for the provision of payment services under the Payment Services Regulations 2009 [register reference].'

You should check the PSRs for further details about the specific requirements.