Emma RadmoreAfter holding fast for so long over its decision not to exempt domestic premises suppliers from the need for authorisation under the cut-back BNPL exemption, the Government has now been persuaded to exempt them after all.
In its policy paper explaining why it is now laying a further statutory instrument before Parliament, the Government explains that it received several representations that bringing these suppliers within the scope of regulation could disproportionately impact small businesses and consumer choice, as respondents produced evidence that BNPL products are increasingly being offered to SMEs on this basis.
As a result, domestic premises suppliers will no longer be required to have FCA credit broking permissions to offer BNPL products, but consumers will still have the protections that come with the lender needing to be authorised. The Government expects the legislation to be in place to coincide with the regulation of BNPL.