The review into its future direction was led by Laurie Edmans, its non-executive Chairman.
The industry body is to expand its resources and activity significantly, and is to appoint a full-time director-general and support staff, who will be based in a central London office. To date, all SHIP activity has been undertaken on a voluntary basis by its members.
The director-general will focus on developing strategy for SHIP, and communications activity with the range of stakeholders in the equity release industry, including IFAs, product providers, consumers, the media, regulators, consumer organisations and government. Ensuring that products are safe for consumers will remain SHIP’s pre-eminent aim. However, with the appointment of a director-general, a key priority will be to increase understanding about equity release, particularly how changed it is as an industry, and how relevant it is to today’s retirees.
Once appointed, the director-general will work with two new SHIP boards – a main board of SHIP members who will make decisions regarding the direction of SHIP’s activity, and a new management board which will manage the execution of decisions from the main board. SHIP’s current home reversions and lifetime mortgage boards will be incorporated within the management board.
Laurie Edmans, non-executive Chairman of SHIP since June 2006 and current chief executive, Jon King, who has led SHIP since 200,1 will work together in forming an implementation board to appoint the new director-general and instigate the new management structure for SHIP going forward. It is hoped that SHIP’s new director-general will be operational by 1 January 2008.
The expansion is a logical step to enable SHIP to continue its success to date in working to promote a safe equity release market, via product and advisory standards. Since home reversions were regulated in April 2007, the equity release market is now fully regulated by the FSA, and is widely predicted to expand as an integral part of post retirement financing.
Although the whole sector is now regulated, SHIP continues to safeguard standards above those required by regulation. For example from 1 August 2007 no SHIP member will accept business from an adviser who has not passed the appropriate lifetime mortgage exams, and from 6 April 2008, IFAs wishing to do business with its 21 members will have to hold a home reversion qualification.
Laurie Edmans, non executive chairman of SHIP, commented: “The decision to appoint a new full-time director-general represents a real advance for SHIP. It highlights the united desire of SHIP members to increase activity within the equity release market whilst continuing its positive work to raise standards of advice for customers and IFAs.”
Jon King, chief executive of SHIP commented: “SHIP has come a long way since its early days in 1991 and the member’s decision to appoint a full-time director-general only serves to prove this. With a dedicated management board and increased resources SHIP will be in the best position possible to push for further advancements in the equity release industry.”
