The guide, which complements its Checklist for Advisers, is designed to ensure consumers receive a high-quality and personalised service from their advisers. But it will also guarantee that case files capture sufficient details.
And it will help support advisers in gathering soft facts and record customers’ use of language to show why the advice and any product recommended was suitable for the individual circumstances.
Chris Pond, chairman of the Equity Release Council’s Standards Board, said: “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.
“Our Checklist for Advisers and Best Practice Guide help to ensure a wide range of factors are explored in depth to identify the most appropriate way forwards to meet each customer’s long-term needs.”
The guide complements the Council’s recently expanded 24-point Checklist for Advisers and comes following a review of its rules and guidance to confirm it is in line with the regulator’s vision.
When combined the two documents are designed to promote consistent advice for consumers and help advisers to satisfy regulatory requirements and the Council’s additional standards.
These standards ensure equity release customers receive the highest level of protection for any property-based loan in later life, with three layers of protection encompassing regulated financial advice, clear product safeguards and independent legal advice.
Sara McLeish, CEO of Legal & General Financial Advice, said the new guide, alongside the checklist, offered a vital resource for advisers, helping them to provide high-quality and consistent advice to all consumers.
“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,” she added.
“The equity release sector has transformed in recent years, with more choice, better rates and improved consumer protections.
“Equity release is now becoming more of a natural choice for many planning retirement and is a valuable tool that enables people to enjoy a much fuller later life.
“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.
“We are acutely aware that many households find themselves in financial difficulty due to the Covid-19 pandemic and we know, from our own research, that this has left many people re-thinking retirement plans.
“Some of these people will see equity release as a potential avenue to release much-needed funds, to supplement their income, or to support family members hit by the crisis. However, it is important to keep in mind this is a product designed to last a lifetime, not to meet a short term need.
