The Treasury has finally decided to see sense and has okayed the go-ahead for home reversion schemes to be included under the regulatory eye of the Financial Services Authority. Run of the mill equity release schemes will become regulated from January 2005 but until now, home reversion schemes were to be left out.
The regulations will be consulted on shortly and could take between 18 months and 2 years to be introduced.
Our View
By bringing home reversion schemes under the regulations, some of the most vulnerable consumers will be able to feel safe and know they are buying a regulated product, with action that can be taken if things go wrong.
We have always believed that any products that are capable of being sold to the elderly should fall within the realms of regulation.