Commenting on the move, he said: "The Treasury's announcement to consult on the regulation of Home Reversion Schemes is most welcome. Most operators in the mortgage industry simply could not understand why such a high risk product was omitted from proposed FSA regulation in the first place. The products are extremely complex and require a great deal of skill and tact due to the nature of the clients. Indeed, I would support the suggestion that these products require a specialist adviser with a bespoke qualification to handle them.
“Certainly, to have a situation where Equity Release or 'lifetime' mortgages are regulated and Home Reversions are not is absurd to say the least. One would hope that the necessary amendments to legislation can be made in time to meet the FSA's current deadline for mortgage regulation in October 2004."