Credit-related regulated activities

Credit-related regulated activities

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Payment of fees by installments seems to be fairly typical of Limited Companies, but some of my soletraders pay me as and when purely because they don't save to pay my fees.  I am struggling to work out if we now have to obtain a licence under the Financial Conduct Authority as the ACCA no longer have a group licence.  Or do we have to tell clients they can no longer pay by installments?

Replies (4)

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By cbp99
25th Mar 2014 09:52

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I think that payment in 4 instalments eg quarterly standing order, is ok - but it's hard to be sure, or to find certainty in the usual forest of legislation.

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By pushtheriver
25th Mar 2014 10:58

Presumably invoicing a monthly fixed fee and being paid by SO is OK?

What about when clients take longer than term or pay amounts on account with or without agreement?

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By onmyown
25th Mar 2014 12:18

This is my concern where we haven't agreed clients can pay on account but do so due to cash flow.  

The legislation is not an easy read and ACCA hotline seems to be constantly engaged.

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By Fidodido
25th Mar 2014 14:42

acca

Looking at the detail it seems that if you do not charge interest etc then you are fine.

Its only if you give more than 3 months credit.

If a client takes 12 months to pay, you have not given them that credit or agreed to it, its just the way it has worked so i do not see that you would fall in to it.

As long as you do not give any other advice in the other sections then you will not need to DPB reg or FCA reg.

thats my take on it anyway.

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