Kevin Paterson, managing director of Park Row Mortgages, maintained the syllabus should cover all aspects of finance that lifetime touches upon, from state benefits to aspects of long-term care to allow brokers to fully understand the advice they give.
He said: “The qualification looks like it was rushed out in response to the Financial Services Authority (FSA) criticism. I don’t think it was thought out. The ones who are getting the qualification are already trading in lifetime and are taking the exam to be able to continue to do so. But it avoids people going into it because it’s another type of mortgage. It shows a level of credibility in the market, but the exam syllabus doesn’t go far enough.”
Paterson added that while Safe Home Income Plans (SHIP) had said it would no longer trade with advisers that lacked a lifetime qualification after August 2007, the organisation should introduce the policy immediately. He explained: “The way the FSA approaches lifetime is still in its infancy, but it has classified it as high risk. It should be now that advisers need a qualification to trade through SHIP. But while it’s too early to get a meaningful qualification, it’s better than nothing and still worth getting.”
But Mark Roberts, head of financial regulation, corporate and academic relationship management, pointed out the Financial Services Skills Council (FSSC) was consulting on a revised lifetime syllabus and could potentially be adding home reversions to the mix. “It’s a public debate, so brokers are more than welcome to get involved. The FSSC develops the syllabus and we take the exam standard and develop an exam around it. Equity release is fast moving and we need to make sure the exam standard keeps pace with the environment.”
