The Financial Services Authority has released more details of its plans to regulate the sale and rent back sector. In the downturn this sector has grown substantially and unscrupulous lenders have excited the interest of the Office of Fair Trading and HM Treasury due to a lack of good information being given to consumers. This is an interim regime and will ultimately be replaced by a full regime which is expected to come into operation on 30 June 2010.
Unauthorised firms operating in the sale and lease back sector will now need to seek authorisation from the FSA. The scheme is expected to come into operation on 1 July 2009 and firms will have until 1 August 2009 to seek authorisation. Already authorised firms will need to apply for a variation of permission to allow them to continue to operate.
Firms wishing to apply for authorisation should look at this page on the FSA website which contains information to assist with an application including the type of information that will need to accompany the application. The FSA states that the page will soon also contain draft application forms.