Regulatory Information
Is your investment in an LLP regulated by the FCA?
Your interest in an LLP, and our involvement in arranging for you to acquire or sell your interests in the LLP, is not regulated by the FCA because this does not fall within the scope of financial services regulation. This means you do not have any protections under the FCA rules and do not have any cover from the Financial Ombudsman Scheme or the Financial Services Compensation Scheme in relation to your interest in an LLP.
This is an important difference to other home finance products, such as a mortgage. This is because mortgages, and mortgage providers, are required to be regulated by the FCA. Wayhome is not supervised and regulated by the FCA, or subject to any FCA rules, in relation to these activities.
What about the insurance arrangements?
As mentioned above, Wayhome is not regulated by the FCA for the main part of its business, which relates to arranging for you to acquire or sell your interests in an LLP and activities associated with your interest in an LLP.
However, as part of Wayhome's activities, we arrange buildings insurance on the properties we help people to buy. This very small part of our business falls within the scope of financial services regulation. As a result, Wayhome is authorised and regulated by the FCA in relation to arranging insurance policies only (FRN 902968). Wayhome is not authorised and regulared by the FCA for any other aspect of our business.
From a customer’s perspective, an investment in an interest in an LLP should be treated as an unregulated product. This means that you do not have any of the protections that relate to home finance products that are regulated (such as a mortgage). Customers should ensure that they clearly understand this point and accept the risks associated with an unregulated product.
Is my investment in an LLP protected by the Financial Ombudsman Service and the Financial Services Compensation Scheme?
No.
As the LLP is an unregulated product, you do not have any protection from the Financial Ombudsman Scheme or the Financial Services Compensation Scheme in relation to your interest in an LLP. Again, this is different to a mortgage, and a mortgage provider, which fall within the scope of the Financial Ombudsman Scheme or the Financial Services Compensation Scheme.
Is Wayhome part of The Property Redress Scheme?
Yes. Wayhome is also a member of The Property Redress Scheme (membership number PRS025713), which covers our activities in relation to the purchase of your home, the setting up and management of your tenancy and the management of maintenance of your home.
If you have issues related to your experience with us, or when living in a Wayhome property, then Wayhome has signed up to The Property Redress Scheme which is a government authorised independent organisation that handle complaints for the property industry.
Does the RICS Dispute Resolution Service apply?
Yes.
We only use qualified independent surveyors who are members of The Royal Institute of Chartered Surveyors (RICS) for property and rental valuations. This means that any complaints arising about a surveyor can be submitted to the RICS Dispute Resolution Service. Further information is available on the RICS website. The RICS Dispute Resolution Service is the world’s oldest and largest provider of alternative dispute resolution services (ADRs) in the land, property and construction industries.
One of the services offered is the RICS Consumer Mediation Scheme which can be used to resolve disputes between a business and a consumer. Following an application, RICS will nominate an impartial, accredited mediator who will help disputing parties to find a mutually acceptable solution. Fees range from £50-400 + VAT for disputes of up to £50,000 taking 1-4 hours of mediation time (costs as at June 2020). The RICS Consumer Mediation Scheme also offers a helpline providing free advice from a chartered surveyor for any party who is not professionally represented.
Further information is available on the RICS website.
What other options do I have if there is a dispute relating to Wayhome’s service?
As stated above, your investment in an LLP does not fall within the scope of the Financial Ombudsman Service or the Financial Services Compensation Scheme. This means that any disputes would be dealt with through either:
- Small Claims Court; or
- First Tier Tribunal
The Small Claims Court
HM Courts & Tribunals Service is responsible for the administration of criminal, civil and family courts and tribunals in England and Wales. HM Courts and Tribunals service includes typical property related disputes that are handled by the small claims court, such as:
- Disputes between landlords and tenants, for example, rent arrears or compensation for not doing repairs
- Tenants claiming against landlords for repairs or other work to be carried out where the cost of the work is £1,000 or less
The fee is £60 for online claims of £1,000 or £410 for those up to £10,000 (as at June 2020). You can find more information about the service here.
First Tier Tribunal
Part of the HM Courts and Tribunals service, the First Tier Tribunal (Property Chamber) handle applications, appeals and references relating to disputes over property and land for a low fixed fee.
Typical residential property related disputes that the Tribunal handles include:
- Rent increases for ‘fair’ or ‘market’ rates
- Leasehold disputes
- Improvement notices and prohibition orders where the notice is under the Housing Act 2004
As part of this process the tribunal will appoint an expert valuer to arrive at a mediated figure. Proceedings at the Tribunal are semi-formal. Neither side is required to be represented individually by a barrister, solicitor or valuer.
There's more information available on the Government's website about this service.