PERG 2.11 Persons who are exempt for credit-related regulated activities

3Various persons are exempted by Order made by the Treasury under section 38 of the Act from the need to obtain authorisation for certain credit-related regulated activities in the circumstances specified in the Order (for example, in some cases, a person is exempt only when acting in a particular capacity or for particular purposes). Persons exempt under the Order cannot be exempt in relation to some regulated activities and authorised in relation to others (except where the person is an authorised person with only interim permission).

A person acting as:

1. (1)

   an official receiver; or

2. (2)

   a judicial factor;

is exempt in respect of debt adjusting, debt counselling, debt collecting, debt administration or providing credit information services.

This exemption applies to a scheme under which an employer provides or makes available to their employees a cycle or cyclist's safety equipment up to the value of £1,000 (which is designed to allow employees to take advantage of section 244 of the Income Tax (Earnings and Pensions) Act 2003). An employer does not require authorisation for the regulated activities relating to regulated consumer hire agreements just because it operates such a scheme.

A person who takes steps to ascertain the identity or location (or the means of ascertaining the identity or location) of a borrower or hirer is exempt from debt-collecting as long as the person is not the lender or owner under the agreement concerned, takes no other steps to collect debts due under the agreement and carries on no other activity which requires authorisation.

There are also exemptions from credit broking, debt adjusting, debt-counselling and providing credit information services for an enterprise scheme as long as it does not carry on the activity for, or with the prospect of, direct or indirect pecuniary gain. Sums reasonably regarded as necessary to meet the costs of carrying on the activity do not constitute a pecuniary gain for this purpose.