You are here: Home - News -

Ditching equity release qualification ‘a mistake’, says Chalk

by: Heather Greig-Smith
  • 18/05/2017
  • 0
Ditching equity release qualification ‘a mistake’, says Chalk
The Financial Conduct Authority (FCA) has “missed an opportunity” by deciding not to go ahead with a standalone equity release qualification, an industry expert has claimed.

Earlier this month, the FCA decided not to press ahead with the qualification, saying consultation responses were mixed and it might restrict access to the market.

Age Partnership technical director Simon Chalk (pictured) said the regulator has listened to mortgage industry lobbying on the matter, but should instead see equity release as a financial planning issue.

“Equity release is a financial planning tool. It’s an asset for supporting later life needs, it’s not about repaying a mortgage,” he said.

“The vast majority of people who use equity release do not make repayments. Most can’t afford to – that’s the reason they have taken equity in the first place.”

He added that the tool belongs firmly in the financial planners’ arena and that the current level three qualification is a “Mickey Mouse” option.

“They should have created a level 4 standalone qualification. It could have taken an element of the mortgage market into that standard qualification, which would have helped financial planners understand the wider issues.”

Chalk said mortgage brokers but are not best placed to advise on care. “It’s a specialism and it’s not that simple.”

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.

Profiles

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.

Marketwatch

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.

Poll

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:
Benson Hersch, Association of Short Term Lenders
Fraud and your solicitor – Benson Hersch

When a fraudulent application for lending slips through the net who is on the hook; the lender, the broker or...

Close