View more on these topics

SHIP welcomes step towards formal home reversion regulation

SHIP has welcomed the news that the government has taken another step towards the introduction of formal regulation for home reversion schemes. The third reading of the bill has been completed and means royal assent could be granted by the end of the year, enabling an acceleration of the consultation process. The final consultation process may be completed some point in the Q3 2006 with formal regulation in place early 2007.

SHIP has been campaigning for two years to bring the sale of home reversions under the regulation of the Financial Services Authority. The government announced in 2003 its intention to regulate the sale of lifetime mortgages but at that time intended to exclude home reversions from this. SHIP felt this would result in an uneven market and limit consumer choice and professional advisers would not be able to make a fair comparison between home reversions and lifetime mortgages.

To bridge the gap ahead of formal regulation SHIP has taken steps to enhance consumer protection in a way that mirrors lifetime mortgage requirements. These include the establishment of an independent complaints board able to issue fines of up to 25,000 per case and a product confirmation letter designed to give peace of mind to the consumer. The new regulatory regime will mean an end to the two-tier reversion market where SHIP members were held to certain product and selling standards because of the SHIP code but non-members were under no such obligation.

Jon King, chairman of SHIP says: We are delighted at the progress being made towards bringing home reversions under the regulatory umbrella of the FSA. SHIP has consistently argued for home reversions to be put on the same footing as lifetime mortgages and we are pleased to have been able to contribute to the shaping of the new regulation. Recent figures from SHIP show home reversions business growing strongly and so the need to raise standards of consumer protection is greater than ever.

Recommended

Egg calls for student loan data to be shared

In conjunction with a new industry initiative to improve banks lending decisions by the increased sharing of customer information, Egg is calling on the government to do its part in raising responsible lending standards and share student loans data.Today Barclaycard, Abbey and the Co-operative Bank announced plans to share additional customer data on credit cards, […]

Pre-Budget 2005: Brown launches planning gains tax

Gordon Brown has unveiled a local planning gains supplement to give local authorities a fair share of planning gains to invest locally.The Government is also encouraging LAs to bring derelict sites back into use.

When is it OK to pull deals?

Last week Mortgage Strategy revealed that Future Mortgages was suspending its 100% LTV product range.

A&L expects to exceed forecast

Alliance & Leicester says its performance in 2005 is expected to see it finishing ahead of forecasts of 506m operating profit.

Mental health in the mainstream

By Amanda Docherty, senior marketing consultant Apart from career success, millions in the bank and, on appearance, coveted lifestyles, what else do Rio Ferdinand, Lady Gaga and Ellie Goulding all have in common? They’ve all demonstrated that the power of celebrity can sometimes have a more altruistic purpose than idle gossip. Recently we’ve seen respected […]

Newsletter

News and expert analysis straight to your inbox

Sign up