You are here: Home - News -

Intermediaries may be set lifetime exams by FSA

  • 01/07/2003
  • 0
The Financial Services Authority (FSA) is considering putting mortgage intermediaries through e...

The Financial Services Authority (FSA) is considering putting mortgage intermediaries through exams before they can advise on lifetime mortgages.

A spokeswoman for the FSA said the plans were still in initial stages and as yet there were no details on the content or timing of the exams. She said: ‘We are looking at it and one option might be to add on a module [to existing exams] to cover lifetime mortgages. We have established working parties and talked to institutes, consumers and the MCCB about what knowledge they think is required by intermediaries. We will be using this information to draw up proposals.’ She said the FSA expected to have plans in place in the next few months and would consult on it with the industry as an independent issue.

Chris Cummings, director at the Association of Mortgage Intermediaries (AMI), said: ‘AMI recognises that lifetime mortgages are higher risk than standard ones. When an intermediary is advising on these products they will need to consider a number of factors: the grants available, the tax implications, availability of means tested benefits and the age and health of the borrowers.

‘The scope of this knowledge, and its local application, means that these products require specialist knowledge and, without doubt, professional advice. So AMI supports the need for a qualification which recognises the added professionalism of those who choose to advise on lifetime mortgages. Such qualifications add to the credibility and standing of our industry ‘ and reassure clients that they are receiving advice that they can rely on. However, the exam needs to be incorporated into the overall qualifications for intermediaries.’

Stephen Atkins, compliance director at Mortgage Next, said: ‘I think it is beneficial to both the intermediaries and the end user as some detailed knowledge is essential for lifetime mortgages. However, I hope that when I see the proposals they do not go so far as to stop people from giving advice in this area.’ Atkins said the main issue would be deciding who would handle the exams.


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Making the first move

With first-time buyers dwindling, the buy-to-let market is set for another phase of growth and brokers should not fight shy...