Advisers are being warned to ensure they have the necessary home reversions qualifications in place ahead of the Safe Home Income Plan (SHIP) April deadline.
After the regulation of home reversion schemes in April last year, SHIP, the UK equity release providers' industry body, decided advisers wishing to do business with its members must hold a home reversion qualification from 6 April 2008.
In addition, IFAs must ensure they have applied to the FSA for their Variation of Permissions, which will enable them to offer home reversions.
SHIP also urges intermediaries to ensure they have appropriate Professional Indemnity cover, advising them the premium is not likely to increase by a vast amount, if at all, due to the number of companies offering competing rates.
Andrea Rozario, director general at SHIP, says: “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 6 April.
“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.”
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