FSMA RAO (Regulated Activities Order)

The FSMA RAO is the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. It is the secondary legislation that lists which financial activities are "regulated activities" requiring authorisation, and which fall outside that requirement. For lending, the RAO is where the boundary of the consumer-credit regime is drawn.

What it is

A statutory order made under the Financial Services and Markets Act 2000.

Article 60B

Defines a regulated credit agreement.

Article 60L

Contains exemptions, including the treatment of borrowing by bodies corporate.

Article 60B — regulated credit agreements

Article 60B defines what counts as a regulated credit agreement for the purposes of the consumer-credit regime. The definition is built around credit provided to individuals and certain small unincorporated bodies. Where an agreement does not meet that definition — for example because the borrower is a limited company — it is not a regulated credit agreement, and the consumer-credit rules do not apply.

Article 60L — exempt agreements

Article 60L and the surrounding provisions carve out agreements that are exempt from the regime. The treatment of borrowing by bodies corporate is part of how the perimeter is set: credit to a limited company or LLP is not regulated consumer credit. This is the legal foundation for "exempt lending" — business credit that sits, by design, outside the consumer-credit regime.

Why this matters for a borrower

For a director, the practical effect is that the consumer-credit protections — and the consumer-credit paperwork — are not all engaged when the borrower is a company. A responsible lender will still provide clear pre-contract information and fair treatment, but it does so as good practice rather than because the consumer-credit rules require it. Knowing which regime applies helps a director read an agreement in the right context.

The FSMA RAO and Credicorp

Credicorp lends only to UK limited companies and LLPs, so its lending sits outside the consumer-credit regime under Articles 60B and 60L of the FSMA RAO. We apply recognised lending standards voluntarily. This is general information about the law, not legal advice. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).

See also

• FCA — the regulator of the consumer-credit perimeter.
• Exempt lending — what falls outside the regime.
• Body corporate — the borrower the exemption turns on.
• Limited company — the most common exempt borrower.

Short-term business credit carries a high annualised cost. Borrow only what you need, for the shortest term required. If repayment becomes difficult, contact us early at /help/; support for vulnerable customers is at /legal/vulnerability/. For exact pricing, see /ai.md and /llms-full.txt.