Govt wants FSA to regulate buy-to-let and second charge
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The Government has proposed the FSA should regulate buy-to-let and second charge mortgages and that borrowers whose loans are sold on to third parties should get greater protection.
In a consultation document published today, the Government says third party providers who buy mortgage books should be subject to the treating customers fairly regime.
It proposes the FSA’s remit should include the regulation of buy-to-let and second-charge mortgages, in line with the FSA’s recent mortgage market review findings.
Exchequer secretary Sarah McCarthy-Fry says: “Since the onset of the global financial crisis, the Government has worked hard to ensure mortgage borrowers are treated fairly by their banks. Our focus has been to do all we can to make sure people can stay in their homes and to limit repossessions as much as possible.
“But we are aware that this crisis has raised issues around the world about the regulation of the mortgage market. We are determined to reform the system for the future, to offer both stronger protection for consumers and greater stability in the housing market.”
The consultation sets out the details of the proposed legislation and will close on 15 February 2010 and any final measures will be implemented through secondary legislation.
The proposals build on announcements made in reforming financial markets, which was published by HM Treasury in July of this year and set out the Government’s analysis of the causes of the financial crisis.
The Government will implement these proposals via the Financial Services Bill currently before Parliament.
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Readers' comments (4)
Incompetent Regulators Awards Team | 25 Nov 2009 10:34 am
What's the point? Pen pushers who know nothing about business trying to protect business men and women.
Anyone who is involved in buy to let is in business. Just more interference and more stifling of trade. With the record of the FSA's failures in regulating the domestic market, it's best left alone!
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Julian Stevens | 25 Nov 2009 12:57 pm
Exactly ~ the FSA is so incompetent that it can't regulate what it's got on its plate already. But, if this government were to get its way, everything would be regulated, right down to buying a bar of chocolate or a roll of toilet paper.
It's all got so stupid that I can't wait for the FSA to be torn to pieces and reconstructed under a completely new FSMA.
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Julian Stevens | 25 Nov 2009 1:37 pm
Just think ~ if all the regulatory bodies were disbanded, the UK's unemployment figures would probably be twice as bad as they are already.
So, by comparison with past unemployment highs, when we weren't having to pay a slice of our earnings to support all these quangos and the people who work for them, the present unemployment high might well be the worst ever, at least since the 1930's.
Add to that all the useless public sector employees whinging about their modest rates of pay (because you're all so useless that no one in the private sector would want to employ you) and compare the combined total with the number of people who actually do useful, valuable and productive work rather than leeching off others and the ratio of one to the other is alarmingly large.
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Jackson Cohen | 26 Nov 2009 11:35 am
If the FSA take over secured borrowing from the consumer credit act and apply the current style MCOB regulation to it it will actually be a lot easier for lenders and more understandable for borrowers. The CCA is hugely complicated.
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