Between October 13 and 20 the Financial Conduct Authority (FCA) cancelled the permission of ten firms or individuals with consumer credit permissions, all because the firm in question did not submit the Consumer Credit Return (CCR).

The firms / individuals concerned were:

• Midland Motor Company
• Clackmannan Car Centre Limited
• Mark Samuel Motors Limited
• Motor Spot Limited
• Luke Andrew Mills
• Select Motor Company Limited
• Samlet Car Sales Limited
• Excel Leasing Limited
• Danes Autos Limited
• FC Group Limited

The FCA considers that failing to submit a CCR is not only a breach of Principle 11, which requires authorised firms to be open and co-operative with the regulator, but also that firms which fail to submit this return cannot be considered ‘fit and proper’ to operate in financial services. When logging in to the FCA’s GABRIEL system, firms can view a list of what regulatory returns they need to submit, how often they need to submit them and when they are due, and firms must make absolutely sure that all deadlines are met.

As can be seen from the names of the firms listed above, many of those who failed to submit the return are in the motor trade, and financial services would not be their main line of business. Nevertheless, all authorised firms must submit regulatory returns to the FCA on time, and all information in these returns must be complete and accurate. The CCR requires authorised firms to supply a range of financial and non-financial data about their activities during the reporting period. No matter how awkward or time consuming a firm finds it to complete an FCA data return, this is quite simply just one of those tasks that needs to be done. Firms needing guidance with completion of regulatory returns are advised to seek professional advice.

A persistent refusal to submit a regulatory return will inevitably lead to the firm losing its permission to carry out financial services activity. The FCA is also likely to impose the ultimate sanction in any of the following instances, all of which it will also regard as a breach of Principle 11:

• Failing to pay fees and levies due to the FCA, or to Pension Wise, the Money Advice Service, the Financial Ombudsman Service and the Financial Services Compensation Scheme
• Failing to inform the FCA of a change of address
• Not providing necessary information to allow the FCA to conduct a monitoring visit
• Not replying to any other FCA communications

The CCR comprises the following sections, and firms are expected to complete all sections relevant to their particular credit permissions:

• CCR001 – relating to a firm’s financial data
• CCR002 – relating to a firm’s business volumes
• CCR003 – for lenders
• CCR004 – for debt managers
• CCR005 – for firms that have permission to hold client money and other client assets
• CCR006 – for debt collectors
• CCR007 – for limited permission firms for whom financial services is not their main business
• CCR008 – for credit brokers
• CCR-Complaints – relating to a firm’s complaints data

The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article.