In the Pre-Budget Report of 2008, the Government confirmed that it would be consulting on giving the FSA the power to regulate the sale and rent back (SRB) market.
The FSA has published its own separate Consultation Paper entitled Consultation Paper 09/6: Regulating sale and rent back: an interim regime (CP09/6).
In CP09/6, the FSA sets out how, if it were to be given these powers, it would regulate the SRB market. The FSA proposes a two-stage approach:
- An interim regime, to be brought in as soon as the legislation comes into force, in order to address the most immediate problems for consumers as soon as possible.
- A full regime which is likely to be implemented in the Q2 of 2010.
CP09/6 is set out as follows:
- Chapter 2 provides a brief analysis of the SRB market.
- Chapter 3 outlines the regulatory options that the FSA has considered.
- Chapter 4 outlines the FSA’s proposed interim regulatory framework.
- Chapter 5 discusses the FSA’s proposals for interim permission, status disclosure, supervision and reporting.
- Chapter 6 discusses the proposed high-level principles and rules.
- Chapter 7 considers complaints and redress.
- Chapter 8 outlines regulatory fees.
- Annexes 1 and 2 contain a cost benefit analysis of the FSA’s proposals and an analysis of their compatibility with the FSA’s statutory objectives and the principles of good regulation.
- Annex 3 lists the consultation questions.
- Appendix 1 includes the draft direction and proposed rules.
Comments on CP09/6 are due by 1 May 2009.
View Consultation Paper 09/6: Regulating sale and rent back: an interim regime, 6 February 2009