As reported earlier this year, regulation of consumer credit activities is transferring to the FCA from the Office of Fair Trading (OFT).
The switch, taking place on April 1st 2014 – April Fool’s Day – will see businesses, including bike shops, picking up the bill for the switch.
Any business intending to continue to offer consumer credit needs to register with the FCA for ‘interim permission’, for which they will have to stump up £150 (if they are a sole trader) or £350 (for limited companies, partnerships and other types of businesses). Those applying for ‘interim permission’ before the end of November will get a 30 per cent ‘early bird’ discount.
With finance seen as a near on vital tool for many bike shops, particularly in this still poor economic climate, this admin cost is unwelcome, to say the least. With that in mind, ActSmart has spoken with the Financial Conduct Authority (FCA) on the topic.
The organisation said: "Our main focus is now to work with the regulator to ensure that the supply of responsibly-provided credit is maintained and made easily accessible to our subscribers.
"We believe that the Government and the FCA have not fully understood the impact of the changes on small businesses, and would like to ask for your [IBDs] help in putting together an evidence base to ensure that the new regime is both fair and proportionate for businesses of the kind that are represented across the Ride it away, Slide it away and Take it outdoors retailer networks."
You can find the ActSmart survey link in this story.