Under the new proposals outlined – due to be implemented on 30 June 2010 - exploitive advertising and high pressure sales techniques will be banned. The new proposals also include other positive consumer protection measures such as the introduction of a cooling-off period, tighter procedures to ensure that consumers have security of tenure and a requirement that in every sale firms check that the consumer can afford the deal and it is right for them.
Compliancy Services recently launched a specialist sale and rent back (SARB) arm of its business to support firms - either operating in or looking towards the SARB market - with the FSA’s regulatory requirements.
The specialist arm was launched to aid SARB firms, many of whom have never previously been regulated, deal with the often complex and time-consuming requirements of achieving and maintaining FSA authorisation. The launch comes amidst a recent flurry of activity in the sale and rent back market as a number of recent complaints regarding financial promotions activity have been upheld by The Advertising Standards Authority and The Office of Fair Trading.
Ben Mason, director at Compliancy Services, commented: “The FSA has quite rightly set its stall out regarding protecting consumers in the SARB sector and these proposals illustrate its intention of giving it nothing less than its absolute attention. The prevention of high pressure and inappropriate sales is vital to raising standards and firms should be expected meet tough standards of business conduct in order to achieve full authorisation. There is great potential in the market but under the regulators glare there are no short cuts and firms must be fully versed on all compliance requirements. However, support is out there and a good quality compliance support package will go a long way to gaining and maintaining these standards.”