The FSA has published a letter it sent to Alistair Darling MP (Chancellor of the Exchequer) outlining the key points in the development of problems at the Dunfermline Building Society (Dunfermline) and the FSA’s supervisory approach. In the letter the FSA sets out:
- The evolution of building society freedoms to conduct different types of business.
- The chronology of Dunfermline’s diversification into the problem loan categories.
- The chronology of the FSA’s general warnings to the building society sector about the importance of maintaining the quality of their loan books and risk controls.
- The FSA’s response to emerging problems of Dunfermline over the last 18 months.
- The possible implications for future regulatory and supervisory approaches.
- The FSA has also published a letter it sent to Dr Vince Cable MP (Liberal Democrats’ shadow chancellor) on the FSA’s regulation of the building society sector.
View FSA response to Rt Hon Alistair Darling MP on the FSA's supervision of Dunfermline, (PDF 226KB), 17 April 2009
View Response to Dr Vince Cable MP in respect of the FSA's regulation of the building society sector, (PDF 25.5KB), 17 April 2009