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Are equity release schemes regulated?

April 26, 2017equity regulated release Schemes

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Are equity release schemes regulated?

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The Financial Services Authority (FSA) regulates Lifetime Mortgages and Home Reversion Schemes. If you decided to invest the money you get from an equity release scheme in an annuity then the company involved will be regulated by the FSA. Many of the best-known companies offering equity release schemes sign up to the SHIP Code of Practice . SHIP stands for ‘Safe Home Income Plans’, but the code of practice covers many different type of equity release schemes, not just the mortgage-based home income plans. SHIP members agree to follow a voluntary code of practice, undertaking to provide a fair, safe and complete presentation of their schemes to potential clients. SHIP members provide a certificate which has to be signed by the client’s solicitor before a scheme can be taken out.