Our previous note on the Consumer Credit (Amendment) (EU Exit) Regulations 2018 (SI 2018/1038) detailed some minor fiddling with the Consumer Credit regulatory regime in anticipation of 'exit day' - currently still scheduled for 29 March 2019.
We noted that the Regulations did not include any transitional provisions that would allow firms to make changes to their regulated documentation gradually. Rather the expectation appeared to be that firms would make the changes immediately on exit day.
Treasury has listened to concerns from the industry about the potential for vexatious unenforceability claims in the event that firms were unable to implement changes to their forms of SECCI by the exit day. A draft Statutory Instrument (the "Consumer Credit (Amendment) (EU Exit) (Transitional Provisions) Regulations 2019") has been introduced. These amend the original EU Exit Regulations, so that firms will in effect have until 1 September 2019 to make the changes - so a further five months. The SI is still in draft form and is subject to change.
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