HM Treasury Exempts Certain Bounce Back Loans From Regulatory Regime
05/01/2020HM Treasury has published the Financial Services and Markets Act 2000 (Regulated Activities) (Coronavirus) (Amendment) Order 2020, exempting certain loans made under the U.K. Government's Bounce Back Loan Scheme from regulation under the U.K. financial regulatory regime. The Order applies to loans of £25,000 or less made under the BBLS by commercial lenders to sole traders, unincorporated associations and partnerships of four people. These loans will be classed as exempt credit agreements and will therefore largely not be subject to the provisions of the Consumer Credit Act 1974. Such loans will also not fall within the ambit of the authorisation regime under the Financial Services and Markets Act 2000 (with the exception of loans by lenders who carry out the activity of debt collecting in relation to these loans). The purpose of the Order is to remove legislative obstacles that would otherwise inhibit lenders granting loans to small businesses under the BBLS. The Order comes into force on May 4, 2020.
View the Financial Services and Markets Act 2000 (Regulated Activities) (Coronavirus) (Amendment) Order 2020.
View the Explanatory Memorandum to the Order.
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