Sale and rent back firms

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Do I need to be authorised?

How do I get authorised?

Contact us

If you have a query, please call our Contact Centre on 0845 606 9966.

 

Since 1 July 2009, we (the FSA) have regulated sale and rent back (SRB) business.

So, in order to carry out regulated SRB activities a firm must be authorised by us. These activities are: entering, administering, advising on, and arranging (bringing about) an SRB agreement. They also include making arrangements with a view to a regulated sale and rent back agreement.

Rules for SRB firms

In Consultation Paper CP09/22, we set out details of the changes we intended to the SRB rules in the full regime compared to the interim regime.  We have now made the final rules for SRB firms – these and the accompanying Policy Statement are included in Consultation Paper CP10/04. 

The full rules specific to SRB firms are in the MIPRU (Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries) and MCOB (Mortgages and Home Finance: Conduct of Business sourcebook) sections of the FSA Handbook.

This means that firms applying for authorisation need to show how they will comply with the detailed conduct of business rules that apply to SRB firms.

Please see this summary of some of the key rules for the full SRB regime.

Applying for authorisation

The ‘build your own’ application packs for home finance intermediaries and home finance providers include SRB activities in the available permissions and details of the additional documents we require to assess any application that includes SRB activities.

Firms that are applying for the permissions of ‘entering into a regulated SRB agreement’ or ‘administering a regulated SRB agreement’ should apply using the application pack for home finance providers.  This is classed as a moderately complex application and the relevant application fee applies.  These applications can also include the other SRB permissions if these are required. 

Firms that are applying for the activities of advising, arranging and making arrangements only should apply using the application pack for home finance intermediaries.  These are classed as straightforward applications for application fee purposes.

Please be aware that we have six months to assess your application for authorisation if this is complete, 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.  When submitting your application for full authorisation you must provide all information requested.

Please note you are not allowed to carry out any SRB activities until your application for authorisation is approved.  

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