65% of advisers concerned over equity release compliance

New research for referral service, Key Partnerships, has found that two out of three advisers are forecasting a rise in equity release enquiries but are put off advising themselves due to concerns about access to research and being able to meet compliance requirements.

Related topics:  Finance News
Warren Lewis
2nd February 2016
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Almost half (46%) do not intend taking the equity release qualifications despite growth in the market, research shows.

Around 52% say they are concerned about the compliance requirements for advising on equity release plans while 48% of advisers fear they do not have access to comprehensive data on the full range of products available.

However one of the biggest concerns that emerges from the research regarding compliance issues is the finding that 40% of advisers do not believe that equity release requires specialist market knowledge, potentially putting them at risk if their recommendations are challenged.

Key Partnerships believes all advisers should be discussing equity release opportunities with clients. However, those without the appropriate qualifications, and without access to the full range of products available, would benefit from having a referral relationship in place with a trusted partner which can offer significant benefits from both a risk and commercial perspective.

Will Hale, director at Key Partnerships, said: “It is encouraging that advisers are becoming more aware of the role that equity release can play in retirement income planning but it is equally important that they recognise the need for specialist advice and feel supported. Equity release products require considerable understanding as simple variances can impact heavily on client benefits and the cost of borrowing. Getting it wrong can be very costly for advisers and their firms.

Not all advisers want to specialise in equity release but are aware that offering advice can mean the risk of significant customer detriment if the advice is not appropriate.

Advisers can refer their clients to us and ensure they will receive face-to-face advice from the UK's leading equity release broker which takes all of the regulatory and compliance worries away, while helping maintain a valuable client relationship. Our whole-of-market expertise helps ensure optimal outcomes for customers, delivers attractive referral fees for advisers and provides protection from compliance and regulatory risk.”

The study found that 44% of advisers would consider entering into a referral relationship with a specialist equity release adviser partner, supporting the growth seen by Key Partnerships, who saw registrations exceed 6,000 at the end of last year.

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