Regulator plans crackdown on moneylenders

A CRACKDOWN on unlicensed moneylenders, new rules governing senior bankers and a major consumer information campaign are on the way after the Financial Regulator announced its latest plans to shake up the financial services industry yesterday.

The regulator’s strategic action plan, which was published yesterday, promised a review of the moneylending industry next year that could close off existing loopholes in the law that allow moneylenders, who in some cases charge lending rates of over 20%, to operate without formal supervision. The review is expected to be completed by September.

The regulator’s proposals also included new requirements for managers and other senior executives in banks to prove that they are fit to hold their positions.