In its consultation paper proposals, the FSA said the same oral disclosure rule proposals may be read across to the equity release, including lifetime and home reversion markets, sales processes and Home Purchase Plans, or Islamic mortgages.
The Islamic mortgage Initial Disclosure Documents (IDD) currently include the name of the Islamic scholar who confirmed the payment plan’s compliance with Islamic law. The regulator said it was keen any proposals would not sweep this check aside in the final rules.
However, the regulator said it thought the Financial Information Statement (FIS), used in place of a Key Facts Illustration (KFI) sheet would take in the same changes as the KFI.
The proposals suggest the Initial Disclosure Documents (IDD) will be scrapped but firms can still use them as the basis for communicating with clients and conveying the key messages if they wish, said the FSA.
