The Equity Release Council has published a new guide to foster clearer communication across later life lending.  

The body says that the manual, produced with ratings agency Fairer Finance, “aims to give customers the best chance of understanding products and services and support them to make good financial decisions”.  

It is available to the council’s membership of more than 750 firms and 1,900 registered individuals, including product providers, regulated financial advisers, solicitors, surveyors and other professionals involved in both consumer-facing and back-office roles.  

It says that the handbook can be used “as a practical toolkit when developing new communications or updating existing ones.  

“It covers the importance of using simple, jargon-free language as well as ensuring that documents are structured and designed in a way that is user friendly.”  

The body points out that one in six adults has a reading age of 11 or less and would fall short of the standard required to achieve a grade C English GCSE, according to the National Literacy Trust.  

It adds that the Financial Conduct Authority requires firms to ensure their customer communications are “clear, fair and not misleading,” which has been strengthened by its Consumer Duty reforms introduced last July.  

The body adds that the Financial Ombudsman Service considers the readability of documents when deciding if firms have acted fairly or reasonably when judging consumer disputes.    

Equity Release Council chief executive Jim Boyd says: “This guide builds on a cast iron commitment, that was enshrined in the very first equity release industry standards more than 30 years ago, to provide customers with fair, simple and complete presentations of information.  

“With more features and flexibilities available on the market than ever before, it is vital that customers understand their options, so they are empowered to make informed financial decisions.”  

Fairer Finance founder and managing director James Daley adds: “Equity release is a complex product and it’s crucial that customers can understand exactly what they’re signing up to.  

“Our guide provides practical advice which will make it easier for lenders and brokers to write, design and structure their documents in a way that is accessible for as many customers as possible.”