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Commercial Finance Introducer Commercial Finance Introducer
the regulation
Recent research published by Exact has
suggested that the majority of broker want
buy-to-let to be regulated by the FSA.
Nikki Cann, associate director of the NACFB,
wonders why
rom time to time there have per cent is not really an overwhelming – the loan used to purchase a property which
been calls for the buy-to-let majority. More importantly though (and is then rented out as an investment - would
market to be regulated by the preferably before the FSA flies in through the solve the problem of the poor, stranded, novice
FSA. A couple of years ago, a window with its red cloak flapping behind it) I landlord. Because central regulation is an
survey by Alliance & Leicester would ask what it is that people assume expensive option; I believe it therefore should
suggested that the vast majority ‘regulating the buy-to-let market’ would be used intelligently, sparingly and actually to
of brokers wanted buy-to-let to actually consist of, and what this would help solve the problems it was designed to
be regulated. The shout went up again last achieve? address.
year when repossession solicitors, Moore As an aside on a related point, I would like to
Blatch, announced that 9 out of ten lenders Will it solve the problem? ask what evidence there is that it’s the lack of
want the buy-to-let market to be regulated. Now, I don’t want anyone to think that I am regulation in the market that’s actually causing
At the end of last year, the FSA themselves simply taking an anti-regulation stance for the the problem. All NACFB members who deal in
said they were looking at the issue. And in sake of it – or even that my point is necessarily buy-to-let have to comply with our Code of
the last month cry has gone up again from that regulation is the wrong move. Protecting Practice, whether they are regulated or not, and
Exact, who has surveyed brokers and the the consumer is of paramount importance and complaints which come to this office from
results suggest that the majority of these part of the reason the NACFB was established unhappy clients give no indication that it’s
want the market to be regulated. fifteen years ago. If a valid case can be made non-FSA regulated brokers who are causing the
Firstly, I would like to suggest that if 54 per for regulating the buy-to-let sector then it has problem. The call for regulation is to protect
cent of brokers surveyed want regulation, then my full attention. My question has more to do novice investors who have been sucked in to
presumably the other 46 per cent don’t, and 54 with whether regulating a buy-to-let mortgage investing in buy-to-let by tales of millionaire
September 2009 Mortgage Introducer
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