Regulated home purchase plan meaning

Background to the regulation of regulated mortgage contracts and home finance transactions The oversight of regulated mortgage contracts, along with home reversion plans, home purchase plans, and regulated sale and rent back agreements (together termed ‘home finance transactions’), emerged at different stages. In 2000, HM Treasury signalled its plan to regulate mortgage lenders, and in December 2001 it updated those proposals to bring mortgage intermediaries within scope. On 31 October 2004—widely called M Day—both lenders and intermediaries dealing in regulated mortgage contracts (RMCs) became subject to regulation. Subsequently, the Regulation of Financial Services (Land Transactions) Act 2005 (RFS(LT)A 2005) was passed, empowering the Financial Conduct Authority (FCA), and before it the Financial Services Authority, to supervise activities akin to those already regulated for RMCs, but where the provider acquires land rather than merely advancing funds for the homeowner’s purchase. Consequently, the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO), was amended twice. These changes aligned land-related arrangements with the existing mortgage regime and established...

The section 2 requirements in the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989) are disapplied for certain contracts and trusts. This Practice Note identifies those categories and outlines how the exceptions take effect. Excepted contracts The contractual formalities set out in LP(MP)A 1989, s 2 do not apply to contracts: for leases not exceeding three years (ie short leases under Law of Property Act 1925, s 54) made in the course of a public auction regulated under the Financial Services and Markets Act 2000 (other than a regulated mortgage contract, regulated home reversion plan, regulated purchase plan or a regulated sale and rent back agreement) Constructive trusts The statutory formalities in LP(MP)A 1989, s 2 do not affect the creation or operation of resulting, implied or constructive trusts. No written evidence is required. A constructive trust arises in relation to legal title where a party’s conduct makes it unconscionable to allow them to deny the other party...

This Practice Note outlines the regime governing financial promotions and wider communications concerning regulated mortgage contracts (RMCs), home purchase plans (HPPs), home reversion plans (HRPs) and regulated sale and rent back agreements (SRBAs) — together described as home finance transactions — as contained in the Financial Conduct Authority’s (FCA) Mortgages and Home Finance: Conduct of Business sourcebook (MCOB), with particular focus on MCOB 3A and MCOB 3B. For guidance on other parts of MCOB, see Practice Notes: Mortgage and home finance conduct of business: application and general requirements, Mortgage and home finance conduct of business—distribution and disclosure requirements and Mortgage and home finance conduct of business—responsible lending, charges and arrears requirements. Application of MCOB 3A MCOB 3A covers the making or approval of any financial promotion that concerns qualifying credit. Definitions ‘Financial promotion’ means an invitation or inducement to enter into investment activity or to undertake claims management activity that is communicated in the course of business...