Greater collaboration and more joined-up thinking are needed across financial services to prevent property wealth from being overlooked in later life financial planning, a survey has found.
The findings from the Equity Release Council survey demonstrate the need to forge closer links across a later life advice arena that is often separated by different regulatory permissions.
Meanwhile an independent report commissioned by the Council calls for measures to address the regulatory divide that separates advice on equity release, traditional mortgages and wealth planning.
The Council survey asked members to select five actions to help consumers access the right financial advice in later life.
- 73% chose ensuring more mortgage advisers understand equity release and when it might be appropriate to recommend it and refer clients on was deemed the most important action.
- 70% chose ensuring equity release advisers have a broad understanding of related products and markets.
- 64% chose ensuring wealth managers and independent financial advisers understand equity release.
- 55% chose building more referral relationships between firms in different areas of the later life financial advice market.
- 44% chose improving adviser training and continuing professional development throughout an adviser’s career.
Reducing siloed advice is a key focus of recommendations set out in the independent report, Later Life Lending: Great Expectations, commissioned by the Council.
The report argues in favour of addressing the regulatory divide and differing CPD requirements that can create blind spots between the advice regimes and restrict the recognition of property in financial planning.
The Council has undertaken several initiatives to support the development and enhance knowledge across the financial services industry. For example, both its adviser guide to equity release and its competency framework are available to non-members.
Kelly Melville-Kelly, head of risk, policy and compliance at the Equity Release Council, said: “Equity release is a great product but it’s not for everyone. That’s why the Council and its members work hard to make sure unsuitable candidates get put on the right referral pathway for the right product and advice. It’s a regulatory requirement and something that’s embedded in our standards.
“Unfortunately that doesn’t always cut both ways. We believe there are many people who could benefit from equity release presenting to financial services professionals who possibly cannot advise on it or have outdated views of it. Either way it means they might overlook their clients’ property wealth in the advice process.
“The need for a more joined-up approach to advice does not start and finish with later life lending. All financial services professionals have a part to play to make sure people get the right information and support.
“The arrival of Consumer Duty and the thematic review of retirement income advice are two important opportunities to put the customer at the heart of later life financial planning.
“It is vital we find new ways to work across product boundaries to deliver a more cohesive experience and ensure customers leave no stone unturned when it comes to improving their retirements.”
● To download the adviser guide and competency framework visit www.equityreleasecouncil.com/adviser-guide or www.equityreleasecouncil.com/competency-framework.
