FSA gets tough on unregulated rent-back deals

The Financial Services Authority is planning to regulate all firms and individuals selling sale-and-rent-back agreements.
Currently firms are only regulated if rent-back is their main business.

But the FSA says it is concerned that there are a number of unregulated rent-back transactions.

It believes that some small firms and individual investors active as rent-back providers are avoiding regulatory requirements because they claim that they are not carrying on rent-back activities ’by way of business’.

The FSA is seeking to change the rules so that even if a firm or individual does one transaction it will need to be regulated.