The Financial Services Authority (FSA) has laid bare some of the sales practices adopted by firms in the now-defunct sale and rent back (SRB) market, including evidence one firm charged clients up to £40,000 on single transactions.
The SRB market involved home owners selling their homes at a discount to firms that then promised to let them stay as tenants. However, following a thematic review, the regulator found most deals "were either unaffordable or unsuitable and never should have been sold". In February, the FSA said it had taken action against several SRB businesses, including sending one to its enforcement division, and that the market was, in effect, suspended. The FSA has now published finalised guidance for firms, outlining in detail the practices it came across during its review. According to th...
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