The regulator is in the early stages of developing a new regulatory programme for Islamic Home Finance and home reversion schemes and is recruiting project teams to develop regulatory frameworks in these areas.
The extra positions are for mortgage and housing specialists in the retail policy division which is responsible for defining policies from initial development through to implementation and ongoing reviews.
FSA spokesman David Whitely confirmed that the FSA was in the midst of recruiting in the aforementioned areas but denied that that regulation in the home reversion market was imminent.
He said: “It has already been announced that we will regulate home reversion schemes but with the consultation process yet to be undertaken, it’s not imminent. Islamic finance already falls within regulated activity but it is a growing area, hence the additional resources.”
The Treasury has published the first of its consultation papers on the regulation of home reversion plans. The paper also examined whether Islamic Ijara home finance arrangements, one of the main Sharia-compliant mortgages available to Muslims, should fall within the scope of a home reversion plan.
Amjid Ali, UK head of HSBC Amanah, said: “An increase in regulatory measures would be welcomed as this has to be a good thing for the customer.
“Education is key; it’s an evolving area and full historical understanding and interpretation is paramount. The market is a growing but at a reasonable rate; the important element is that we can service its needs.”
Ben Stafford, policy officer at the Association of Mortgage Intermediaries (AMI), said: “There are distinct similarities between the home reversion and Islamic markets. There is a demand out there for Islamic mortgages but it is difficult to put a handle on it, being such a specialist area.”
