SMP support FCA stance on equity release qualification
15 May 2017
The Society of Mortgage Professionals (SMP), supports the FCA’s decision not to introduce a standalone qualification for equity release – but stressed the need for continuing CPD.
A recent member survey carried out by the SMP and Personal Finance Society (PFS), found an appetite amongst advisers (77 per cent), for a separate qualification. However, the organisation acknowledged that feedback within the mortgage profession as a whole was mixed and that there appeared to be no overwhelming majority in favour.
SMP operations manager, Vishal Pandya, commented: “The general consensus is that the existing system, where advisers must be mortgage-qualified up to level three to sell equity release, remained satisfactory.
“The regulator has reflected this view in its PS17/11* review of exam standards, reasoning that a solid understanding of mortgages is, and is likely to remain, an important competency in giving equity release advice. We condone the logic behind that.”
However, Pandya went on to caution that anyone involved in the provision of regulated equity release advice must ensure their knowledge is kept up to date and relevant.
“Carrying out continuing professional development should remain a priority for everyone in this fast-changing sector, especially because there is a myriad of changes to the way products are being made available to consumers. Firms must ensure that their employees remain competent.
“Furthermore if an adviser feels that their expertise has become a little dated since originally qualifying, they ought to consider re-taking the qualification, or even progressing to level 4 status.”
The SMP/PFS survey on the subject indicated an increasing trend towards more integrated planning advice rather than tailored advice on specific topics.
Pandya concluded: “This may in part reflect changing demographics and the need for a more integrated approach to the complex and related needs of those in later life, such as the adequate provision of retirement income, the funding of long-term care and intergenerational wealth transfers.”
