The Council’s new standards committee chair was appointed in April and has already overseen the launch of the latest version of the Council’s standards. Below Michelle sets out her motivation and aspirations for the role.
What motivated you to take on the role of chair of the Standards Committee, and what do you hope to achieve during your tenure?
My career has been built around my belief in financial services as a force for good. Money, when managed well, can help us achieve our goals and aspirations in life, whatever they might be. And financial products and services when well understood and regulated, can be the tools that help us unlock those goals. So the challenge of taking on the role as Chair of the Standards Committee and ensuring that the product is safe and that consumers are appropriately engaged and protected, was one I couldn’t refuse. Hopefully, we can continue to build the Standards whilst also ensuring that the product has the space to innovate to provide the best outcomes for consumers now and in the future.
Thinking back to when you first heard about equity release, what were your first impressions and has your opinion changed?
I can’t honestly remember when I first heard of equity release. I suspect it was in the late nineties when I worked at the regulator. Things have clearly improved significantly since that time and the Equity Release Council and its members have played a big part in that.
(Assuming you think it has one) how do we address the reputational challenges of equity release (or bust myths) so that people who might benefit from it properly consider it?
Some of it is simply about doing the right thing. Making sure the product is safe, and the consumer is protected. The Consumer Duty is a great opportunity to put the consumer front and centre and ensure they achieve good outcomes. But for me, it’s also about having the conversation – tackling some of the taboos about money, property wealth, inheritance etc. The average consumer’s understanding of their money and their financial lives is low, and most need and want defaults and societal norms to help them understand what ‘good’ looks like when managing money. ‘What do people in my situation do? What’s normal?’ Equity release (even when the product is technically delivering good outcomes), can still feel alien and even sometimes a tool of last resort rather than one of aspiration. So, changing that mindset and asking people to really think through what they want to achieve for themselves and their families is important. And then ensuring that the product can and does actually achieve that.
What are your thoughts on the future direction of the equity release sector, do you have any worries or do you think there are any particular opportunities?
I think there are plenty of opportunities to reposition equity release as a tool for good in addressing some of society’s big conundrums, and helping people live happier, healthier later lives. When used well, it really can and should be a positive experience. There are still, however, many risks involved in ensuring that the consumer understands what is a fairly complex product and perhaps, just as importantly, comprehends the long-term consequences for themselves and their families. That basic challenge shouldn’t be underestimated.
Can you tell us a bit about yourself and your background, and how it has prepared you for your current role as Chair?
I spent the first 14 years at the regulator. Initially the PIA and then the FSA. My first role was working on the misspelling of pensions review in the 90s. And then a number of roles looking at supervision, financial promotions and then finally financial capability. The last part of my time there I helped lead the National Strategy for Financial Capability and was instrumental in the set up of the predecessor to what is now the Money and Pensions Service. The second part of my career has been in the voluntary sector. I’m Chief Executive of The Money Charity and Trustee of Gambleaware. The Money Charity is the UK’s financial capability and well-being charity and we exist to help people build the skills, knowledge and attitudes to manage money well throughout life.
I have a rounded understanding of financial services and money management and a fairly unique perspective of understanding both consumers and the financial services sector.
Just for fun, please share something about you that not many people know!
I’m a long-term Exeter Chiefs fan and have travelled all around the UK and Europe watching them play rugby.
