The FSA says intermediary firms should stay out of the equity-release market if they cannot commit significant resources to back a push into this area.
Speaking at the Mortgage Business Expo, retail distribution and mortgage team manager Sonja Dullaway said: “Firms must go into the market and commit to doing it properly or stay out and refer their business to those who have.”
Norwich Union head of marketing for post-retirement products Elizabeth Boardall said it is not only big firms with considerable resources that can enter the market. She said: “We work with IFA firms of all sizes, including the very smallest who may only do a few cases a year.”
Safe Home Income Plans said earlier this year that its members will only deal with advisers who have passed the Chartered Insurance Institute’s lifetime mortgage exam from August 1.