The Treasury has admitted that proposals to exclude charities that do not arrange mortgages “by way of business” will be harder to implement than imagined.
While many respondents to the latest consultation on mortgage regulation agreed that money advice agencies should not be regulated in principle, some say a specific exclusion will have to be written into the legislation.
The Treasury acknowledges it “cannot say categorically that all money advice centres, Citizens' Advice Bureaux, charities and so on are not carrying on the activity by way of business as this will depend on the circumstances in each individual case”.
But it refutes the need for a dedicated exemption, saying that factors such as whether clients pay for advice “points to Citizens' Advice Bureaux and others not being caught even without a separate exclusion”.
The Treasury also vows to remove anomalies noted between the definitions of by way of business under investment business and that for mortgages.