Preparing for Variation of Permission
From 30 June 2010, the interim authorisation regime for Sale and Rent Back (SRB) business will come to an end. In order to ensure a smooth transition to the full regime, please read the following carefully:
- Firms with an interim Variation of Permission (VoP) who plan to continue undertaking SRB business from 30 June must apply for and receive approval for the full regime. You are advised to apply as soon as possible (including any application fees, see below) to ensure your application can be processed before the full regime starts.
- Authorised firms without an interim VoP who plan to start SRB activities on or after 30 June 2010 may submit their VoP application form before the full regime begins. However, please note that under SRB legislation, applications cannot be treated as being formally received until the full regime starts on 30 June – this is the date when the application fee becomes payable. Please do not provide the application fee before this date as we are unable to accept it.
- Authorised firms who plan to begin SRB activities before 30 June may still apply for an interim VoP. Please see details below.
Changes for the full SRB regime
The Consultation Paper CP 09/22 provided details of intended changes to the SRB rules in the full regime compared to the interim regime. The Policy Statement and final rules for SRB firms are now included in Consultation Paper CP10/04.
Firms applying for a VoP under the full regime need to show how they will comply with the full regime’s new rules, not the interim rules.
Please see this summary of some of the key changes for the full SRB regime.
Applying for Variation of Permission under the full regime
Please submit the VoP application form for home finance and general insurance mediation activities has been updated. This now includes SRB activities in the available permissions and any additional documents required by us to assess any application that includes SRB activities.
SRB permissions for the full regime will only be granted from 30 June 2010. If you plan to continue SRB activities from 30 June 2010 you should apply as soon as you can, submitting all information and documents requested in the application form. When submitting your application for a full VoP you must provide all information requested, even where this was provided in the interim application.
Please be aware that we allow six months to assess your application for authorisation, with up to 12 months for an incomplete application. An application is complete when we have received all the information and evidence needed for us to make a decision.
VoP applicants should note that they are not allowed to carry out any SRB activities until their application for full authorisation is approved. This is a change from the interim regime. So, if the application is not approved on 30 June 2010, the applicant firm needs to stop SRB activities until they are authorised. This would include making arrangements for an authorised SRB administrator to take over the administration of any existing regulated SRB agreements.
Application fees for firms with an interim VoP
If you are only applying for the same SRB activities for which you currently have an interim VoP you will pay a reduced fee. This is because the fee paid for your interim VoP will be deducted from the total application fee. Please see section five of Consultation Paper CP 09/22 where this is set out in full.
We cannot accept applications that include SRB activities for which you do not currently have an interim VoP. Firms holding an interim VoP who plan to carry out additional SRB activities from 30 June 2010 or later should apply for the permissions currently held and submit an application to vary permission (for which an additional fee will be payable) on or after 30 June 2010.
Interim VoP applications for sale and rent back business
Firms that are currently authorised are still able to submit an interim VoP application if they are intending to carry out SRB activities for the remainder of the interim period (i.e. starting before 30 June 2010). Firms that are making an application for interim VoP should use the same VoP application form and include a cover letter stating that the application is for interim authorisation. Firms should have reference to the rules that apply to interim SRB business (please see the policy statement PS09/9).