SHIP urges IFAs to get qualified

Financial advisers selling equity release mortgages are coming under pressure to boost their home reversion scheme knowledge before April 6th.

Safe Home Income Plans (Ship), which represents 90 per cent of equity release providers, said advisers who did not hold the appropriate home reversion qualifications could not do business with its members.

This obligation placed on all intermediaries selling equity release packages to consumers will ensure they are fully informed on regulations which came into force in April 2007 regarding the schemes which are a type of equity release plan.

And Ship is also urging advisers to apply to the Financial Services Authority (FSA) for variations of permissions which will enable them to offer home reversions and to ensure they have appropriate professional indemnity cover.

These requirements will ensure consumers considering home reversion schemes, many of whom go via intermediaries to get the best deals, will receive a more professional and regulated service.

Andrea Rozario, director general at Ship, said: "Ship's core aim is to ensure the highest standards in the equity release market from products to advice. This is reflected in our decision to make home reversion examinations compulsory for IFAs wishing to work with our members from April 6th.

"With the April deadline fast approaching, we urge advisers to ensure they are fully prepared to advise on home reversions and take advantage of the advisory opportunities presented by the growing equity release market."

Both the Chartered Insurance Institute and Institute of Financial Services offer home reversion qualifications.