The body announced in June it would no longer accept equity release business from advisers without a Certificate in Lifetime Mortgages (CeLM) or an equivalent qualification after 1 August 2007.
However, Stuart Wilson, managing director of Equity Release Advisory Service, believed an ‘equivalent’ qualification was too ambiguous and would see some under-qualified advisers continue to process equity release mortgage business.
“SHIP has not specified what ‘an equivalent’ is, so this could be anything, including just reading the Financial Services Authority guidelines and signing a waiver. This could allow people to slip through the net and continue doing business which isn’t what the industry wants.”
Wilson also believed providers had underestimated the impact on business levels, which he thought would be noticeably hit once SHIP’s new guidelines were introduced.
However, Jon King, chief executive of SHIP, insisted business would be restricted to qualified equity release professionals and the organisation’s move would benefit the sector.
He said: “The two principle qualifications will be the CeLM and the CF7 and we are working with the Skills Council to make sure these exams cover everything that is needed. Things will be slightly different in Scotland, so when we say ‘or equivalent’, it just means taking geographical differences into account.
“People who are serious about doing equity release business have plenty of time to get the relevant qualification. This move is all about driving up standards and this is a massive step forward for the industry.”
