View more on these topics

FSA to ban high pressure selling of sale and rentback schemes

The FSA has today set out a new proposals that will ban “exploitative advertising and high-pressure sales techniques” in the sale and rentback market.

It proposes a cooling-off period, banning cold calling, prohibiting firms from dropping promotional leaflets through letter boxes and prohibiting the promotional use of emotive terms like “fast sale”, “mortgage rescue” and “cash quickly”.

The regulator is also proposing that consumers have security of tenure and the introduction of a requirement that in every sale firms check that the consumer can afford the deal and it is right for them.

The proposals are due to come into effect on June 30, 2010, building on the FSA’s interim regulation which started on July 1, 2009.

The FSA says the proposed expanded regime is designed to ensure an SRB market where firms are fit and proper and appropriately resourced and firms’ staff are competent to carry out their role.

It also wants to ensure that consumers get “clear, concise and consistent information about a firm’s services and products” so they can make informed choices and have appropriate protection if things go wrong.

FSA head of mortgage policy Ed Harley says: “Sale and rentback can be the right solution for some consumers, but many of the people typically targeted are financially vulnerable and have been badly hit by the experience. The FSA’s proposed new rules will help to protect consumers.

“We want to prevent high-pressure and inappropriate sales, and help consumers understand sale and rent back products, so they only enter into sale and rent back where it is an appropriate and sustainable solution for them.”

The consultation period ends November 30, 2009.


Website Comments

On whether the EU will force a separation of advice, intermediation and distribution

IFAPAC petitions for FSA management change

The Independent Financial Advisors Political Action Committee is petitioning Gordon Brown to change the senior management at the FSA, which it says has failed in its job to protect the financial well-being of consumers.

Inheritance tax and estate planning – exemptions and reliefs

By Kim Jarvis, technical manager with Canada Life’s ican Technical Services Team In this article we look at the main exemptions and reliefs that are available on death. Within the article, spouse also means civil partner.   Nil-rate band Under current rules, any part of the estate that falls within the available nil-rate band (NRB), […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. What is the diference?
    …between this and any othe ‘high pressure’ activities such as PPI, racking up charges, increasing card rates, ‘you must arrange your insurance with us’, in fact anything the banks do? Nobody mentions that do they? No banning of their high pressure tactics is there? In fact I wonder if the methods employed in repossessions are any more distasteful than those employed by the ‘rent and sale back’ outfits. One such case I have seen requires FSA scrutiny but will they bother with the bank?

  2. FSA to ban high pressure selling of sale and rent back schemes
    Is the FSA really trying to proclaim this to be some kind of big new consumer protection initiative? After 20 years of regulation? Exploitative advertising and high-pressure sales techniques are so obviously contrary to consumer best interests that a blanket ban on them should be one of the FSA’s core regulatory principals applicable uniformly and without exception to ALL regulated firms. Ah ~ slight problem there. Begins with b and ends with s.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm