As part of the FCA’s ongoing work into competition, concerns were raised that the structure of the equity release appropriate qualification was acting as a barrier to consumers being able to access the product. In particular, that IFAs needed a qualification for mortgages to offer equity release that otherwise they have no interest in selling.
As part of the FCA’s review of appropriate qualification exam standards the FCA consulted on whether a stand-alone equity release qualification or top-up equity release qualification (by topping-up existing pensions or investment qualifications) would encourage more IFAs to offer equity release.
The FCA have today released a policy statement confirming that a decision has been made not to change the appropriate qualification for equity release. This decision resulted from the fact that the majority of respondents felt that a standalone or top-up equity release qualification would not lead to a significant increase in the number of people appropriately qualified.
As a result of the decision the appropriate qualification requirements for equity release remain the same.
For more information about what this could mean for your firm, contact Bankhall and one of our experts will be happy to discuss it with you.