BSA: Progress made, but concerns remain, on specialist sourcebook for building societies

BSA: Progress made, but concerns remain, on specialist sourcebook for building societies

BSA: Progress made, but concerns remain, on specialist sourcebook for building societies

Commenting on the publication today of the FSA’s specialist sourcebook for building societies, Adrian Coles, BSA Director-General,
said:

“Whilst good progress has been made on some of the detail of the specialist sourcebook for building societies, we still have concerns that, overall, the sourcebook may tend to disadvantage building societies by imposing a tougher and more prescriptive regime on them than banks or other lenders will be subject to; specifically with mortgage lending requirements.

“We have worked with the FSA during the consultation process on the technical details of the sourcebook and we welcome the significant improvements that move it away from being the rigid and stifling framework we feared in the consultation draft. However, we remain convinced that conclusions on the lending elements of the sourcebook are premature and do not take account of the detailed research and analysis that was undertaken for the Mortgage Market Review.

“We also believe the FSA should commit to a full post-implementation review of the sourcebook within 12-18 months of it coming into force.
Such a review can address any harmonisation needed between the sourcebook and the final policy that emerges at the end of the mortgage market review process.”

~ Ends ~

Notes to Editors

1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 52 UK building societies. Building societies have total assets of almost £335 billion and, together with their subsidiaries, hold residential mortgages of almost
£225 billion, 18% of the total outstanding in the UK. They hold just under £220 billion of retail deposits, accounting for nearly 20% of all such deposits in the UK. Building societies account for about 32% of all cash ISA balances. They employ approximately 43,000 full and part-time staff and operate through approximately 1,700 branches.

2. Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or www.headlinemoney.co.uk

Rachel Le Brocq
Press and Public Affairs Manager
The Building Societies Association
6th Floor, York House
23 Kingsway, London
WC2B 6UJ

Tel: 020 7520 5905
Mobile: 07773489644
Fax: 020 7240 5290
www.bsa.org.uk

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