Safe Home Income Plans is creating a home-reversion code and a complaints board.
Money Marketing rev-ealed in June that Ship was looking at a code because rev-ersion customers will not be protected by the impending mortgage regulation.
Ship is setting up an independent body – the reversion complaints board – which will handle home-reversion complaints not resolved by the product provider or Ship. It will be able to authorise compensation and fines against providers of up to £25,000 if a complaint is upheld.
The board will comprise CII deputy director general Bob Bullivant, Aifa director general Paul Smee, Help the Aged head of public affairs Mervyn Kohler and Ship chairman Jon King. The chairman will be ex-Watson Wyatt partner John Hill.
Ship says it welcomes Gov-ernment regulation of home reversion but says its code is needed as an interim measure because it is unlikely that regulation will be brought in for a considerable time. Until then, Ship's code of practice will be used by members.
Key Retirement Solutions managing director Colin Taylor says: “The code will strengthen consumer confidence by providing a more robust advice and sales process which complements loan regulation.”
Norwich Union director of personal finance Mark Kelly says: “It is important to create a level playing field between home-reversion plans and lifetime mortgages and this code will move us in that direction.”