Just recently I had a discussion with an account manager in the equity release market and it became apparent that we both share similar thoughts about the important role introducers could and should be playing in this sector. This seemed particularly interesting as this individual’s dealings are with advisers who are not active in the equity release market and those advisers I see can best be described as specialists.
That said, our jobs are broadly similar in that we work hard at getting the message across to advisers, not just on what equity release is and how it works but also what it can offer the client and how it can help provide a solution for many problems. This remains a significant challenge for all equity release stakeholders not least because the sector remains such a small part of a very large financial advice market. This is after all not a mass-market product which is relevant for an entire client base.
However, equity release can certainly be deemed to be growing in relevance and importance and it remains vitally important that all types of advisers have at least some knowledge to impart to those clients who it may be suitable for. This again presents a problem because I know not all advisers understand how equity release works, or indeed how equity release can be used to solve a certain problem. Even with day-to-day contact with clients it remains rather disconcerting that some advisers will never be able to factor equity release into their deliberations and recommendations because of this lack of understanding.
For those advisers who already have a meaningful relationship with a specialist equity release adviser, and can therefore be called introducers, this sector ignorance is not a problem. For the most part their introducer relationship means they are being updated and educated by the specialist and they are being taught to recognise those clients who may be suitable. For these advisers, even though they do not advise directly on the products, equity release is now a fully-functioning part of their kit bag. And it is a particularly handy one at that, providing another available option in order to help a client meet their objectives or, let’s be blunt, getting them out of trouble when a problem surfaces, for example, their inability to secure a mortgage into retirement.
On the flip side, there are clearly significant positives for those specialist advisers in having a series of strong introducer relationships. Dealing with the specialists I always outline the merits of having introducers and how to put a structured arrangement in place. Generating such introducer opportunities is not always easy and can require a large amount of work on the part of the specialist; this is because, as noted above, many non-equity release advisers are often in the dark when it comes to the sector and the product availability. This can be detrimental to both the client and the specialist as opportunities are often missed sometimes on a daily basis.
I often warn equity release advisers that their overtures to potential introducers may frequently be met with an initial negative response because equity release has already been dismissed as a potential option. At this point it’s important to be both persistent and friendly, and to outline that if they could just have the opportunity to discuss equity release with the adviser then they could develop a mutually beneficial relationship. This still might not be enough but one would hope in the majority of cases it would give them some time to discuss the sector.
What I would like to think is, if you are a non-specialist adviser and you have taken the time to read this article, then you would be willing to take that phone call when it comes through. Even better if I have convinced you then you may now want to actively investigate who your local equity release adviser is and ask him or her to come along and see you. I am sure they would welcome your phone call and will be more than happy to meet up for a chat and a cup of coffee.
After all, the potential outcome of all of this could mean all parties benefiting not just in the short-term but over a number of years.
Chris Prior is business development manager at Bridgewater Equity Release