UK Treasury finalises BNPL regulation from 3 Dec 2025

Buy-now-pay-later is moving from convenience to regulated credit. On 3 November 2025, the Treasury made a new Statutory Instrument - the Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) (No. 2) Order 2025 (S.I. 2025/1154). It is laid before Parliament on 4 November and comes into force on 3 December 2025, according to the official text on legislation.gov.uk.

This Order fine-tunes the earlier 2025 Order (S.I. 2025/859), which brings certain deferred payment credit agreements - often called BNPL - within the definition of a regulated credit agreement under article 60B(3) of the Regulated Activities Order (RAO). In plain terms, common BNPL deals will sit inside consumer credit regulation once the main regime begins.

Crucially for retailers and marketplaces, the Order confirms that credit broking connected to a regulated deferred payment credit agreement is outside article 36A of the RAO. It does this by refining new article 36FB and excluding domestic premises suppliers when they introduce customers to BNPL. The effect, set out in the Explanatory Note, is that all broking tied to these BNPL agreements is excluded from article 36A.

What this means for you if you sell goods or services: you can offer a regulated BNPL option without being treated as a credit broker for that introduction. You still need to work with an authorised BNPL provider and keep promotions fair, but you are not pulled into a separate broking permission for this specific activity.

The Order also cleans up definitions to keep the transition tidy. It adjusts the interpretation of “relevant activity” so references point to article 60B only, and removes a stray definition of “customer” in article 36FB. Small edits, big clarity for firms reading the rules.

Timelines are pinned down. The 2025 Order set a “regulatory commencement date” of 15 July 2026 for the BNPL regime, and this amending Order uses that date for transition. From that date, if a firm already has a Part 4A permission to enter into regulated credit agreements under article 60B, that permission is treated as covering the updated BNPL activity without a fresh application. The same treatment applies where a firm holds permission under article 64 to agree to carry on the activity.

There is an important safeguard: any limitations or requirements already attached to your permission continue to apply after the automatic variation. And as the Order makes clear, the Financial Conduct Authority can still vary or cancel a Part 4A permission, or impose and change requirements.

Temporary permissions are clarified too. The drafting in article 10(3) and article 11 is tightened to say “activity specified” and “either or both”, avoiding confusion about whether a firm needs some or all permissions during the handover. It is legal housekeeping that helps compliance teams read the same way.

If you are a student or a young shopper using BNPL, the direction of travel is clear: these instalment products are being brought under consumer credit regulation. What this means for you is clearer information at checkout and stronger oversight once the regime begins in July 2026. Keep good records today and expect more formal protections once the rules switch on.

Let’s decode the jargon you will see in coverage. “RAO” is the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. “Article 60B” lists regulated credit agreements. “Article 64” covers agreeing to carry on those activities. “Part 4A permission” is the authorisation a firm gets from the FCA to do regulated business. A “domestic premises supplier” is a trader selling or canvassing in your home.

For process watchers, the timeline matters. “Made” on 3 November 2025 by HM Treasury signatories Taiwo Owatemi and Gen Kitchen, “laid before Parliament” on 4 November, and “coming into force” on 3 December 2025 - with the full BNPL regime switching on 15 July 2026. Those dates are taken from the statutory instrument and its note.

If you run finance or compliance in a retail brand, treat this as your nudge to prepare. Identify which offers are “deferred payment credit”, agree a roadmap with your BNPL partner ahead of the July 2026 start, and make sure your marketing stays within the rules. This explainer is for learning; speak to a qualified adviser for legal advice.