The FSA is to extend the regulation of sale and rent back (SRB) agreements to all providers, in an effort to clamp down on the "considerable" number of unregulated transactions still taking place.
The FSA's quarterly consultation paper proposes that, in line with Treasury proposals, anyone offering sale and rent back agreements will be regulated regardless of whether such transactions form a firm or investor's main source of business. The FSA has regulated SRB since 2009, but only people that did SRB "by way of business" fell under its remit, enabling many to avoid regulation. The changes mean that even if a firm or individual does just one SRB agreement or acts as a provider for a friend, they will be viewed by the FSA as engaging in regulated activity and require authorisatio...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
