The Equity Release Council has launched a Best Practice Guide to help advisers ensure they cover all bases when speaking to clients and documenting their needs.

In the guide extra focus is put on customers who may be vulnerable such as having physical or mental health issues, bereavement, divorce, emotional or financial issues, poor literacy or numeracy.

It also emphasises the importance of gathering information and ensuring the customer fully understands the product they are being advised on or if another option would be more beneficial.

There is a focus on the need for detailed analysis of the customer’s financial situation especially in cases of remortgaging and consolidating debt.

This guide complements the Council’s recently expanded Checklist for Advisers, which now covers 24 points instead of 12. It was produced by the Council’s Standards Board.

Together the two documents are designed to promote consistent advice for consumers and help advisers to satisfy regulatory requirements and the Council’s additional standards.

Equity Release Council’s Standards Board chairman Chris Pond says: “As a standards-setter with almost three decades of experience, the Council continuously reviews and evolves its guidance for members to promote the highest standard of consumer protection.

“This new Best Practice Guide will be a valuable resource for new and experienced advisers as they seek to provide personalised advice to consumers and document their conversations.

“Our standards are based on extensive consultations with members and input from external parties, including the regulator. We support the FCA’s efforts to ensure all customers receive suitable advice on their options in later life.”

Legal & General Financial Advice chief executive officer Sara McLeish says the Best Practice Guide, alongside the recent checklist, is a vital resource for advisers.

She comments: “The equity release sector has transformed in recent years, with more choice, better rates and improved consumer protections.

“The continued raising of standards has been fundamental to this shift, so I am delighted to see the Equity Release Council continue to drive improvements across the market by launching its Best Practice Guide.

“It is vitally important that the industry continually strives for consistent, accurate and robust advice so that all customers, particularly those who are vulnerable, understand the implications of borrowing in later life.”