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Equity release Equity release
equity release such as the ability to bequeath a however that this need not be a solo enterprise; there can be some potentially vulnerable
living inheritance or fundamentally work with local pensions or legal experts who customers, it is surely in the firm’s best interests
improve/maintain the standard of living. will also be looking for opportunities to to make sure all those relevant to any potential
Advisers in this setting must go ‘back to increase business. This could be in the form of a sale have full disclosure and transparency about
basics’ outlining the nature of the products, seminar approach or a more general reciprocal what is taking place? A nasty shock for a
how they work, what the client will be ‘giving referral system allowing all involved to offer a relative at the end of the process can be easily
up’ by opting for a product and all other fully rounded advice service. Not only is this overcome if the client is made aware they can
fundamentals such as the alternatives to equity beneficial to the clients, but it also means that have the support of friends and family within
release. Many recent pieces of consumer event costs can be shared for those involved. the client meeting/interview at any time.
research have shown a high awareness of equity With the quality of equity release advice in
release but concerns about the risks. Overall, the spotlight, firms need to present their Positives
many of the consumers are reluctant but willing services, regulatory compliance and So in summary, while it is in no-one’s best
to use the equity in their homes and need a professionalism in the best possible light. Now, interests for the advisory profession to be
clear steer on the essentials of the ideal product without getting the FSA to write you a ‘school shown in a negative light, all feedback is good
to choose. The honest, open approach works report’ on the quality of your advice it can be feedback and perception is king. Firms should
wonders in building that trust required for any tricky to present your compliance to a potential take this opportunity to push the positives of
advice relationship and demonstrating client. However, by using examples and case their business. Indeed, it may be imperative
knowledge and experience. studies of former clients it should be possible to for equity release advisers to get onto the front
This is also where FSA regulation and show how your own firm’s process works, how foot in terms of reviewing their own practices
authorisation should be highlighted - it is where it meets (and where necessary goes beyond) the in light of the Which? comments.
the protective levels of both the Ombudsman regulatory standards and how the client is Communication becomes even more vital in
and Compensation Scheme can also be covered. looked after, helped and advised at every step of order to keep up levels of business and income.
Equity release is always battling its past but with the way. Consumers will always seek quality and
the full regulation of the sector, it should be Firms should also make sure they outline the security, however, firms must promote and
easier to instil greater confidence in the sector inclusive nature of their advice such as, where educate the public to ensure they are viewed as
and those who work in it. the client requests, bringing wider family and the organisations worth doing business with.
friends within the process so that all Not only is it apparent that all equity release
Events stakeholders are aware of the process and where advisers will need to work increasingly hard to
Getting out into the community to spread the it is heading. show their worth and their professionalism but
equity release message and the services that This is all about showing the care and the whole industry may need to make renewed
your firm provides will be fundamental to any attention that the firm places on each individual efforts to build on the work done so far to
growth of business. Firms should understand client; in an area such as equity release where restore and grow faith in this industry.
November 2009 Mortgage Introducer www.mortgageintroducer.com
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