As many will know, mortgages will fall within the industry regulator’s powers with effect from 31 October this year. General insurance will also become regulated but not until 14 January 2005. The only thing left out is home reversion schemes, although they should become regulated in the next few years.
Many industry commentators (including ourselves) believe that home reversion schemes should fall within mortgage regulation. The Safe Home Income Plans (SHIP) voluntary organisation has recognised the need for regulation and has moved ahead with the implementation of a code and complaints board. The complaints board will have the power to authorise compensation to be paid to investors and also fines against providers. The board will come into action once SHIP and lender procedures have been exhausted. In this respect, they seem very much like the Financial Ombudsman Service.