From The BBC:
Building societies say planned new regulation will make it difficult for them to compete with banks.Proposals from the Financial Services Authority, the City watchdog, include plans to limit riskier types of lending by building societies. These could include high loan-to-value mortgages for borrowers with small deposits and buy-to-let mortgages. The Building Societies Association (BSA) says that the proposals would disadvantage the industry. The BSA has made a formal submission to the FSA following a consultation period on the proposals. ‘Discriminatory, anti-competitive’Adrian Coles, director general of the BSA, said the proposed regulation would have a “discriminatory and anti-competitive effect in the mortgage market”. “The FSA wants controls to make sure mutuals operate safely in the future, but if you start restricting buildings societies, it is hard for them to diversify and the sector won’t be able to react to market drivers,” he said. He added that the new rules, should they co…
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