08 Dic

Fca Regulated Credit Agreement

New activities regulated under the FSMA related to credit contracts depend on whether the party concerned is considered a lender in the same way that the CCA scheme was based on the concept of creditor. The definition of the lender is “a) the person who lends under a credit contract, or b) a person who exercises or has the rights and obligations of a person who has granted credits under such an agreement.” This language differs from the creditor`s definition in force to date, in that it does not refer to an assignment. However, the use of the concept of “rights and obligations” remains unchanged, raising doubts as to whether the definition would apply to an SPV agent of a credit contract. While the amended wording eliminates the inconsistency of the reference to a tariff transferee, it would be more natural to choose the language if the intention was for the agents of the credit contracts to be treated as lenders, “rights or obligations”. Although the lender`s definition is still unclear for an VPS, it is apparent from the SPV exemption that HM Treasury believes that it and (in all cases) the SPV exemption should lead to a safer position for an SPV.14 While these conditions are likely met for most consumer credit securitizations without modification. , prudent changes can be made to transaction documents to ensure that conditions are met. If, for example, the maintenance of agreements naturally requires service providers to maintain all necessary authorizations to carry out maintenance activities, it would be wise to specifically require them to maintain the authorizations provided in the SPV exemption. the credit is granted to the borrower as part of a transaction carried out by the borrower. (a) another person who is authorized with the authority to engage in, exercise or exercise the rights and obligations of the lender under the agreement or, as of April 1, 2014, against the law, engage in regulated consumer credit activities for customers without FCA authorization, unless you can rely on Part 20. You must stop this work until the ACF agreement is granted to you.

As of April 1, 2014, consumer credit activities have been regulated under the FSMA.