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Equity release
21
Spread the
word
With the equity release sector getting a bashing, it is up to
advisers to reassure potential customers, says Bridgewater,
and find new clients
he quality of equity release advice the sector and the advice provided. At a time moving into this advice arena. However, to
T
has hit the headlines recently when equity release could potentially be an quote Richard Denny: “Selling today is all
following an investigation by the important solution for many individuals about relationships; getting on with people.
consumer body, Which? deemed reaching or in retirement, it is vitally important People buy people. Modern day selling is
that two-thirds of all advisers it that the equity release baby is not thrown out about asking the right questions and not
mystery-shopped failed to meet with the bath water of potentially poor advice. talking about yourself.”
its benchmarks for providing good quality We have always been strong advocates of the Each adviser must build his or her own trust
advice. Which? raised a number of need for high quality, professional equity relationships with their clients; truly
concerns about both independent and release advisers who are passionate about understanding their needs and concerns so that
provider-based advisers focusing on the giving quality advice to this sector. Equity the right advice can be provided confidently.
quality of the factfind carried out, the release advice cannot be given in isolation of Don’t forget the two fundamental reasons
perceived lack of explanation about the other considerations such as long-term care, people buy are to either avoid pain or to
potential risks involved, a lack of clarity on benefits, etc so it can be complex with many increase their enjoyment – there are plenty of
fees, and a generally dismissive attitude by significant issues to be taken into account, clients out there who need an adviser’s help to
most to home reversion plans. understood and considered. Therefore equity find the right product to either help them out
This highly negative review into equity release, while it can be a valuable string to any of financial difficulty or to achieve their plans
release advice based on 40 mystery shops may adviser’s bow, has to be taken seriously. for that dream holiday or purchase.
have further damaged consumer perception Any firm looking to enter the sector, or
regarding the sector and the quality of the considering how they can bring in more Marketing
advice they can expect to receive. This is business, must be prepared to put a strong Firms may well have to embark on a charm
extremely concerning for the equity release process in place to ensure that consistent, offensive, but one with substance. This could
industry which places great emphasis on the quality advice is at the heart of their strategy. mean getting out into the local community and
importance of consumers seeking proper providing ‘free’ advice, seminars, and
advice before proceeding with equity release. Trust workshops to groups, clubs, and organisations.
With the negative perceptions that the Which? It could also mean writing a regular piece for
Which? report will have illicited, the whole industry the local paper.
Many advisers may look at the Which? report will have to work hard to engender renewed The educational approach to marketing can
and conclude that, given this is not a regulatory confidence in the products and the advice itself. work well; the idea is to show the public where
body, they need not be overly concerned by its It is all about putting the public at ease about equity release may be able to help them.
findings. However, perception is what counts equity release and continuing to educate them Presentations should outline the potential
here and Which? is a body which has a strong about the solution it potentially offers, being problems they might be facing such as a
reputation for consumer interest and many honest about the risks involved and re-building pension shortfall or a number of debts that
members of the public (and potential clients) faith in the quality of advice. need to be paid off; it can also highlight the
will view the results and be concerned about This does make life harder for advisers positive action that can be achievable with
www.mortgageintroducer.com November 2009 Mortgage Introducer
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