Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had recent discussions with the (a) Financial Ombudsman and (b) Financial Conduct Authority on mis-sold time shares.

Timeshare arrangements are direct investments in property and are expressly carved out of regulation by the Financial Conduct Authority (FCA). Activities that are outside the remit of the FCA are also outside the compulsory jurisdiction of the Financial Ombudsman Service (FOS).

However, both lenders that provides credit to purchase a time share, and firms that make introductions to a lender, need to be authorised by the FCA and comply with relevant FCA rules. The FCA requires firms to have a complaints process in place for regulated activities, which customers should use in the first instance. If they are not satisfied with the firm’s response to their complaint, they may raise a complaint with the FOS.

There are no plans for timeshare investment schemes to be brought within the scope of FCA regulation.