The move will come into force from 1st August 2007.
This resolution from SHIP means that all advisers will have to sit the lifetime mortgages examination offered by the Chartered Institute of Insurers, The Chartered Institute of Bankers (through its educational wing the Institute of Financial Services) or the equivalent bodies in Scotland in order to work with any of its members.
Since the launch of the Institute of Financial Services Certificate in Lifetime Mortgages last year, 2,000 advisers have already registered for the course. It is hoped, that with SHIP members making such qualifications requisite for working with them, that even more advisers will be encouraged to take specialist examinations for equity release.
In addition, SHIP has also announced the introduction of an equity release checklist for advisers selling the product. This checklist can be used as an aide mémoire by advisers to ensure that they have covered all the appropriate areas when selling equity release products to clients such as alternatives to equity release, consultation with families and impact on benefits and estate.
Jon King, chairman of SHIP, commented: “SHIP members have worked hard over the last 15 years to ensure that equity release products are safe, competitive and meet the highest standards possible. We are rightly proud of how we have helped equity release move into the mainstream of financial planning. The challenge now is to ensure that standards of advice in this complex and emotive sector are improved. This decisive step from SHIP members to reject any business, direct or via intermediaries, unless advisers have passed the relevant examinations is a significant step in ensuring that this happens.
“Our equity release checklist is also designed to help improve the advisory process by ensuring that advisers have access to a clear set of guidelines which cover the key risk areas for clients such as impact on benefits, the importance of consulting with family members and even alternatives to an equity release product.
“We are confident that these measures will vastly improve advice standards in equity release, encourage consumer confidence in the industry and ensure its continued growth in the future.”
