Key Partnerships has welcomed the recent acknowledgement by the Financial Conduct Authority (FCA) that equity release has an important part to play in consumer retirement planning.
However, Key Partnerships says that that not all advisers may wish to specialise in equity release advice provision.
The equity release market has reached record levels during 2015 and Key Partnerships predicts this growth trend to continue with pensioner property wealth currently standing at £874bn and growing as of the end of May 2015.
Key Partnerships believes advisers need strong technical support in order to ensure they achieve consistently good outcomes for clients following the so-called ‘pension freedoms’. The FCA has warned against ‘dabbling’ after conducting a review of the equity release market and urged firms to outsource to a specialist adviser where possible.
Will Hale, director at Key Partnerships, said: “We welcome the acknowledgement by the FCA that equity release has an important part to play in consumer retirement finances. The strong growth trajectory for equity release is a reflection of the work the industry has done to build awareness, credibility and confidence. But it has to be acknowledged that not all advisers want to specialise in this area, and equity release can come with the risk of significant customer detriment if advice is not appropriate. As the equity release market grows it is important that advice standards are maintained.
“However, advisers spanning the full range of financial services, from investment specialists to mortgage brokers, can and should engage with consumers about their property asset.
“Advisers can refer their clients to us, who will then receive specialist advice from the UK’s leading whole of market equity release broker – taking all of the regulatory and compliance worries away, while enabling the adviser to expand the scope of their services and maintain a strong and productive relationship with their client.”
