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Further to this, someone has forwarded me advice that reads

"The Financial Services Authority have indicated in their near-final rules that individuals purchasing a sale & rent back on a non business basis will not require interim authorisation, see section 2.6 pages 8 and 55.
 Our understanding of this is that if an individual's main income is not from property they will not need interim authorisation. There are very few lenders who will allow funding for this type of transaction"

 This really is sailing too close to the wind.  There is nothing in PERG 14.5 that says the FSA will scrutinise a person's main income and decide that you're not doing things "by way of business".  You can still be interpretted as conducting transactions "by way of business" regardless of whether you are employed or not in another sector.  The FSA has been explicitly clear that anyone who earns their money "in property" will

 need to be regulated.

 

I would advise extreme caution about following the statement above which i consider erroneous.

Hi Alan,

Your service is a good idea, it will save good leads/deals going to waste if your not FSA registered.

I tried the costs of registering with the FSA but could not find the info on their site.

I have just signed up with your service.

I know it is 4.00am but I can't sleep.

Regards,

Alan

Hi Alan M.

Thanks, we have received notification of your registration.  Don't forget to submit the License Application to us too - it's really simple and free.

The FSA's appliction fee is negligable - only £3,000 for the full cover.  It's even less to apply to simply be an advisor/arranger at £1,000 - but I believe this will be a waste of time - because who will you arrange for?  I am reliably informed that other than us only 3 other companies are likely to become FSA approved to buy SRB properties.

The app fee, anyway, is utterly insignificant compared to the incidental costs and the time/effort involved in applying.  I reckon it will, in real terms, have cost us well in excess of £100k to apply.  It has taken my team and I more than 3 solid months to prepare the procedures and documentation that the FSA requires.  Professional Indemnity insurance is costing us nearly £10k, Consumer Credit License another £1k, additional staff £x, improved IT systems, ...

Add to this that you need to be able to prove your source of ongoing funding, and that it is SRB compliant (most BTL lenders specifically disallow SRB).

Anyway - we're still accepting SRB lead finder registrations on our website so, as you say, at least most investors can maintain their involvement in SRB and sustain a second revenue stream from it.

Best regards,
Alan O

Hi Alan.

I past my first one over today. Emma took the details and my update page says that the deal has been agreed. So far so good. I will post with positive feed back on completion.

You can keep an eye out for it and make sure it goes through for me

Ref 22441

I'm glad that things are looking good on your first referral to us.  We'll do our best.

I don't normally get hands-on involved in individual cases - but I've made an exception for you and have set our system to send me updates each time something changes.

Our growing Sales department is very capably led by Emma.  Her pre-sales team will pass the case over to her fulfilment team tomorrow - so you should see further updates around midday.

It's a pleasure to work with you.

Best regards,
Alan

If this is the best to offer after the FSA regulations it is bitterly dissapointing imo.  Yes you get to carry on banging out leaflets with the SARB offer on the back but to get a measly 1K after the advertising - lead qualification - vendor vist - negotiation of 30% BMV, to get a measly 1K after all this work sucks more than anything I can possibly imagine.  I cant believe there are so many people satisfied with this offering.  Mind you, with this kind of monopoly situation that the FSA has now created you could be the UKs first property Billionaires.  Good luck to you.

PiggyWiggy:

If this is the best to offer after the FSA regulations it is bitterly dissapointing imo.  Yes you get to carry on banging out leaflets with the SARB offer on the back but to get a measly 1K after the advertising - lead qualification - vendor vist - negotiation of 30% BMV, to get a measly 1K after all this work sucks more than anything I can possibly imagine.  I cant believe there are so many people satisfied with this offering.  Mind you, with this kind of monopoly situation that the FSA has now created you could be the UKs first property Billionaires.  Good luck to you.

Hi PW.   I don't understand why you're upset at our offering of £1k.   It's money for nothing!

You don't need to do any negotiation or vendor visits etc. - you just pass the raw enquiry straight to us.  Technical note: you can not advise or negotiate a SARB enquirer unless you yourself become FSA authorised.

If we weren't offering this service, you'd only have two choices: (1) become FSA regulated yourself, or; (2) stop advertising a SARB service.

If you did (1) you too could become a property Billionaire , and if you did (2) you'd have to stick with non-SARB deals.

What our service offers you is the ability to concentrate on non-SARB deals and make good money but, for no extra cost to yourself, add those magic SARB words to your advertising and if you get any enquiries to pass them to us and maybe make yourself a few thousand pounds every month on top of you mainstream non-SARB deals.

Surely, for no extra cost, you're better off, aren't you?!

My apologies if I've misunderstood your reason for disappointment.

Best regards,
Alan @ Buy House

PiggyWiggy:

If this is the best to offer after the FSA regulations it is bitterly dissapointing imo.  Yes you get to carry on banging out leaflets with the SARB offer on the back but to get a measly 1K after the advertising - lead qualification - vendor vist - negotiation of 30% BMV, to get a measly 1K after all this work sucks more than anything I can possibly imagine.  I cant believe there are so many people satisfied with this offering.  Mind you, with this kind of monopoly situation that the FSA has now created you could be the UKs first property Billionaires.  Good luck to you.

 lol, piggywiggy with 1 post...would the real piggywiggy please stand up?