SRB market shuts after FSA poor practice review

Scott Sinclair

The FSA has temporarily shut the sale and rent back (SRB) market after a review found most transactions were either unaffordable or unsuitable and should not have been sold at all.

Following a review of all regulated SRB firms, the FSA has referred one to its enforcement division while others have either stopped taking on new business or cancelled their permissions. Effectively, this means the entire SRB market is temporarily shut. Of the 22 firms reviewed, only nine had been active since the FSA began regulating SRB. Of this nine, five firms have now stopped doing SRB business, three have kept their regulatory permissions but decided not to use them for the foreseeable future, five have agreed to undertake past business reviews (which may result in consumer ...

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