DAVID SMITH

Registered with Property118.com
Wednesday 3rd June 2015


Latest Comments

Total Number of Property118 Comments: 4

DAVID SMITH

19:36 PM, 7th June 2015
About 4 years ago

Regulated activity or not?

Reply to the comment left by "Rob Crawford" at "06/06/2015 - 16:33":

Thanks Rob, there would be a deed of trust detailing maintenace isuses etc as you say, but cant do peppercorn rent or it will become an srb (sale & rent back agreement which is always regulated.
Cheers... Read More

DAVID SMITH

12:12 PM, 7th June 2015
About 4 years ago

Regulated activity or not?

Reply to the comment left by "Puzzler " at "06/06/2015 - 18:59":

Thanks for that, no mortgage reguired and no rent to be paid and no equity released.... Read More

DAVID SMITH

14:43 PM, 5th June 2015
About 4 years ago

Regulated activity or not?

We now seem to be at the bottom of this question Here is my findings for anyone else who may need clarification on this subject (one never knows)

It would seem that this question is quite common after all and dealt with as you said by the FCA. However the underpinning legislation lies elsewhere in section 22 of the financial services & management act 2000. This states that for the purpose of the act an activity will be regarded as a regulated activity if it is carried on by the way of business. PERG. 14.5 of the FCA hand book details the by way of business test applied to such cases. to be considered are...1. the degree of continuity 2. the extent of any commercial element 3. the scale of the activity 4. the proportion the activity bears in relation to unregulated activities carried on by the same person. The act also states that if this there is still any doubt it would ultimately be a matter of judgement. (I assume by a judge in court). With regard to my aunt, she quite clearly fails to satisfy the test for business so the activity would not need to be regulated. The common misconception here appears to be between the person & the activity. People are authorised & activities are regulated (people are not regulated) Further confusion lies herein, Activities are NOT born regulated. They are naturally exempt until they are conducted by the way of business, only then do they become subject to regulation & then the person carrying out such an activity would then need to to be authorised by the FCA. The only exemption is an SARB agreement which is always regarded as "business". My aunt as you say will be entering into a home reversion plan and as it is can be clearly demonstrated that this is not a business activity the transaction will not become a regulated activity & she will not need to authorised by the FCA

The links you kindly pointed me towards offer a clue http://www.fca.org.uk/firms/about-authorisation/getting-authorised/faqs/home-faqs This url. points first to a file named "firms" this is because the FCA does not deal with nor has any jurisdiction over private individuals. Once one begins to enquire to the FCA for clarity one is immediately asked which firm one is from and then the process ends. The fact is that with all the will in the world an individual can't get authorisation from the FCA.

You see, we always get there in the end Mark. Many thanks again & the very best of luck with property118.com.

Regards... Read More

DAVID SMITH

10:37 AM, 5th June 2015
About 4 years ago

Regulated activity or not?

Reply to the comment left by "Sam Addison" at "05/06/2015 - 10:31":

many thanks for you comment... Read More