Retirement Plus managing director Duncan Young said: “It is encouraging that the FSA has been able to note the good progress that has been made by those firms fully committed to equity release business.
“When one considers the growth of business referrals to specialist advisers and lawyers and that next year will see the regulation of Home Reversions and the Safe Home Investment Plan's (SHIP) initiative on mandatory qualifications, it is reassuring to see the concerted effort being made to instill widespread good practices.
“The regulation of the lifetime mortgage market is approaching two years old now and the FSA is telling advisers to catch up with best practice, or refer cases to a firm that already has.
“We would be disappointed if the overall effect of this mystery shopping exercise was to discourage advisers from getting involved in the market at all. What has come out of it is a focus on the quality and standards expected and this is positive and useful guidance for serious new entrants.”
