The rules, which come into force on 6 April, will require those advising consumers on home reversions to pass an appropriate exam. Advisers looking to gain the qualification will need to demonstrate an understanding of the circumstances in which the plans might be appropriate and how these are influenced by consumer preference and financial needs.
The impact on consumers’ future options, along with the key features of reversions and the alternatives will also be a feature of the examination.
Richard Fox, chief executive of the Society of Mortgage Professionals, said: “It is essential that advisers who are qualified in lifetime mortgages ensure that they are also suitably skilled regarding home reversions. This is at the top of the regulatory agenda and firms will not be able to advise unless their people can demonstrate competence.”
Jayne Almond, chief executive at Stonehaven, said: “Safe Home Income Plans has announced it will be compulsory for all members to have passed a lifetime exam, and this is obviously another step towards achieving better practices. Once the reversion sector is regulated, we should see an ironing out of the practices the FSA has been concerned with.”
