View more on these topics

Mutuals get relief from IAS

A statutory instrument from the Treasury, laid before parliament yesterday, will remove some of the pressure of the International Accountancy Standards from building societies.

As reported in Mortgage Strategy on December 6, building societies with intermediary subsidiaries, such as Britannia with Platform, may have been hit by a requirement of the IAS being introduced on January 1.

This would have limited the amount of securitised assets mutuals could have on their balance sheets.

If they went over this limit they would go beyond their ‘nature limits’ and breach the IAS rules.

Sources told MS that Britannia feared Platform’s securitised assets may have taken the mutual over its limit.

But yesterday’s statutory instrument, hailed as a victory for lobbying by mutuals, removed this ruling.

The statutory instrument states: “From January 1 2005, some building societies will be obliged to prepare their accounts using IAS, and others may choose to do so.

” Under IAS, the accounting treatment of securitised assets will change.

“If the nature limits provisions in the 1986 Act are not amended, the new accounting treatment of securitised assets will affect the way nature limits are calculated.

“This Order is therefore intended to preserve the status quo in terms of the nature limits.”

Recommended

Chancellor shuns calls to raise Stamp Duty threshold

The industry has slammed chancellor Gordon Brown for ignoring calls to raise the lower Stamp Duty threshold from 60,000 to at least 150,000 in his pre-Budget statement last week.Instead the chancellor praised his party’s work, telling parliament that mortgage rates since 1997 had averaged 6.1%, almost half the 11.4% average from 1979 to 1997 and […]

And what the industry says…

Ray Boulger, senior technical manager of Charcol “The chancellor has again demonstrated his preference to perpetuate an unfair tax rather than undertake a well overdue reform. His silence on the unfair structure of Stamp Duty is deafening.”Rob Clifford, managing director of mortgageforce “Stamp Duty is one way in which the chancellor has missed a golden […]

Confusion over regulation of additional borrowing

Confusion over whether additional borrowing falls under Financial Services Authority regulation is baffling brokers and lenders.Ray Boulger, senior technical manager at Charcol, says: “FSA rules say additional borrowing is regulated, but some lenders have interpreted the rules in a way I don’t think is correct. If you have an existing case that was arranged pre-Mortgage […]

Mortgage Brain claims KFI system is a hit with industry

Mortgage Brain says its system for checking and demonstrating the accuracy of Key Facts Illustrations has been a hit with brokers, with 15,000 of these compliant documents being produced each day since October 31.This high level usage comes despite brokers and lenders concern about the sourcing systems’ capability to produce accurate KFIs within Financial Services […]

Auto-enrolment

Employers fined £52,500 for auto-enrolment failings

By Jamie Clark, Business Development Manager The Pensions Regulator (TPR) has taken the step of naming and shaming employers that have been served County Court Judgments (CCJs) for non-payment of auto-enrolment fines. We take a look at what this means for employers, their employees and advisers Shamed into action? Sixty-four employers have been served CCJs […]

Newsletter

News and expert analysis straight to your inbox

Sign up