
Contents
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Supervision and Regulation of Building Societies Supervision and Regulation of Building Societies
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Building societies before FSMA Building societies before FSMA
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Building societies under FSMA Building societies under FSMA
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The Regulation of Home Finance Transactions The Regulation of Home Finance Transactions
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Regulated mortgage business Regulated mortgage business
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Pressure to extend the scope of regulation Pressure to extend the scope of regulation
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Home reversion plans, home purchase plans, and regulated sale and rent back agreements Home reversion plans, home purchase plans, and regulated sale and rent back agreements
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Hybrid home finance products Hybrid home finance products
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The Prudential Sourcebook for Mortgage and Home Finance Firms and Insurance Intermediaries (‘MIPRU’) The Prudential Sourcebook for Mortgage and Home Finance Firms and Insurance Intermediaries (‘MIPRU’)
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The requirement for home finance providers to use authorised intermediaries The requirement for home finance providers to use authorised intermediaries
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Prudential requirements for home finance firms Prudential requirements for home finance firms
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Professional indemnity insurance requirements for home finance mediation firms Professional indemnity insurance requirements for home finance mediation firms
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Capital requirements Capital requirements
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Capital requirements for firms to which MIPRU applies Capital requirements for firms to which MIPRU applies
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Conduct of Business requirements for home finance firms Conduct of Business requirements for home finance firms
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Business customers Business customers
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Pre-contractual arrangements made by a home finance provider Pre-contractual arrangements made by a home finance provider
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Responsible lending and responsible financing Responsible lending and responsible financing
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Advising and selling Advising and selling
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Disclosure Disclosure
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Charges Charges
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Arrears and repossessions Arrears and repossessions
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Post-contract charges and arrears Post-contract charges and arrears
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Cite
Extract
One of the main purchases during an individual’s life is residential property. This means that the stability of the home finance sector of the financial services industry is a particularly important challenge for the sector itself and for its regulators. Some years ago, the sector was the more or less exclusive preserve of building societies, but the market has been opened up to wider competition, and a substantial percentage of residential mortgages is now granted by banks. The building society sector has shrunk in size, because of this competition and because some of the larger building societies have converted themselves from a mutual structure and have become, or have merged with, banks.
This chapter has two purposes. One is to outline the main distinctive elements of the regulation of building societies in their capacity as lenders. The second is to give an account of the regime for the regulation of home finance transactions, which includes lending on mortgage secured on domestic property, home purchase business, and home reversion business.
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