Thursday, March 15

CII to raise equity release standards

A certificate in equity release from the Chartered Insurance Institute has been given the go-ahead from the Qualifications and Curriculum Authority, reports Financial Adviser (15/3/07).

The certificate is designed to help advisers and brokers meet the regulatory requirements for lifetime mortgages and home reversions.

New rules from the FSA, which come into force on April 6, require anyone advising customers or overseeing non-advised sales of home reversions to pass an appropriate exam.

The certificate is made up of four units; the CF1 for UK financial services, regulation and ethics, the CF6 for mortgage advice, the CF7 for lifetime mortgage activities and the HR1 for home reversion plans.

Bob Bullivant, deputy director of the CII, said: "The FSA stipulates that existing advisers have two years from April 6 in which to pass the home reversion top-up. We have moved extremely quickly to develop a solution to enable advisers to meet the FSA requirements well within that period. Consumers deserve the best possible advice and I would encourage all advisers involved in equity release to get their knowledge up to the required levels as a matter of urgency."

In January, the CII fast-tracked the development of a home reversion plan top-up for advisers who held the CF7 exam, but responded to calls from the Financial Services Skills Council to create a complete solution.

The certificate has been added to the FSSC's appropriate examinations list.

Advisers who complete the certificate and are members of the CII will be able to use the designation Certs CII (MP & ER) to demonstrate their competence.

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