According to Safe Home Income Plans (SHIP), 6,019 people have passed exams to advise on equity release since April 2005; a move which it says will improve standards of advice.
However, industry figures believe the biggest significance, combined with SHIP’s intention to reject business from unqualified advisers from 1 August, will be to force out brokers who are advising clients through grandfathering rights gained before the introduction of regulation.
Stuart Wilson, managing director of Equity Release Advisory Service, said: “If you want equity release to be more professional then you have to get rid of brokers who are very loosely qualified.”
Dean Mirfin, business development director at Key Retirement Solutions, agreed: “I don’t think any adviser who has passed an exam agrees with grandfathering. Without a qualification, they have no proof of competence.”
However, SHIP warned more advisers needed to gain a qualification before the self-imposed deadline as only two-thirds of the 6,019 were IFAs.
Jon King, chief executive at SHIP, said: “We urge advisers to take advantage of the opportunity presented by equity release and sit exams ahead of formal regulation.”
