If the borrower/s enters a part reversion and down sizes, then they must pay the Home Reversion provider the same proportion of the ownership based on the money released through downsizing. 

The FCA defines a ‘personal recommendation’ as advice on investments, conversion or transfer of pension benefits or on a home finance transaction that is presented as suitable for the client. Advice involves a recommendation to take a course of action based on an analysis of the clients circumstances, needs and goals. The advice has been influenced by the adviser. Generic advice provides generic information only and/or options to narrow down the consumers’ choices, without making an explicit recommendation, so is treated as unregulated.

The Senior Managers and Certification Regime was implemented due to the lack of redress for those in charge when things go wrong, highlighted as a result of the credit crisis.  The new framework will help identify individual accountability if things go wrong and will regulate individual conduct and standards in the financial services industry. Senior managers in Enhanced firms will have a Responsibilities Map that identifies which manager is responsible for each area. This will assist the regulators in identifying who is responsible if problems arise.

Within the training and competence rules within the FCA handbook, records of training must be kept for 3 years for investment advisers from when they leave the firm for non MIFID firms, 5 years for MIFID firms and indefinitely for a pension transfer specialist. 

The FCA "Fit and Proper" test is designed to set minimum standards in relation to those working in a controlled function. It covers honesty and integrity, competence and capability and financial soundness. Adverse credit will be detrimental in respect to meeting these standards.

An unvested personal pension is a pension that has not yet been crystallised. If a person dies before 75 years of age the pension can be paid to any selected beneficiary as either a lump sum or an income based on the nomination of wishes tax free subject to the lifetime allowance (LTA) of £1,073,100. Any amount over the LTA is subject to income tax at the beneficiaries highest marginal rate.

If a property is purchased on a joint tenancy basis it means that all the owners have 100% legal and equitable ownership. This means it automatically passes to the surviving owner(s). No probate is required and it cannot be overridden by a Will. If the survivor is a spouse/civil partner then there will be no IHT issues, however if the survivor is not a spouse/civil partner there may be IHT due if the value of the deceased's share is above the Nil Rate Band (NRB). 

The FOS will deal with complaints in respect to regulated products and advice. The complaint must have been made within 6 years of the event occurring or within 3 years of becoming aware of the reason to complain and not be subject to a court case. If the provider and the FOS has not dealt with the complaint made by the complainant to their satisfaction, they can take their complaint to the courts.

A Fact find is a detailed questionnaire that is used to establish KYC (Know your customer) in order to provide suitable advice. The questionnaire will include all personal and financial details of the client.

Shared ownership is aimed at low income earners and key workers to enable them to buy a property in stages. The scheme involves part ownership and rent, allowing the borrower a more affordable option to buy their own home.