FCA says mortgage firms must do more to make sure appropriate equity release advice is given

On 17 June 2020, the UK Financial Conduct Authority published a press release saying firms must do more to make sure they are always giving appropriate advice to equity release consumers.

The FCA’s review says the equity release market works well for “many consumers“. But there are three “significant areas of concern” which increases the risks for consumers:

-advice given by firms did not always sufficiently take into account consumers’ personal circumstances;

– consumers reasons for looking at equity release were not always challenged by firms; and

– firms weren’t always able to evidence that their advice was suitable.

The detailed rules on equity release are in Chapter 8 and Chapter 9 of the Mortgages and Home Finance: Conduct of Business Sourcebook.