This has been produced in light of the Financial Conduct Authority’s (FCA’s) Future of the Mortgage Market Discussion Paper, which closed to consultation last month.
The paper asked: “How effective and holistic is advice on later life lending? How can our rules support borrowers to access more effective information or advice to support their needs?”
In response to feedback from advisers, the new suitability report builds on Air’s FactFind Learning Programme, which was created with the Equity Release Council (ERC) to make recommendations easier.
It aims to meet Consumer Duty requirements around ensuring customer understanding by breaking advice down into bite-sized documents, with client needs, recommendations and risks presented clearly.
Air said it developed the report to support transparency, reduce misunderstanding and help all clients make informed decisions, particularly those with vulnerabilities.
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Air said that when used in combination with tools such as its Navigator, this could demonstrate how all options have been considered and a certain recommendation has been made.
The report allows brokers to add personalisations and create shorter, digestible documents for clients.
It has been integrated into Air’s Writeroute platform to avoid duplication.
Ben Halhead, director of innovation at Air, said: “The new Suitability Report marks a major step forward in later life lending advice, delivering a stronger process for advisers designed for advisers.
“At Air, we are focused on ensuring later life lending advisers provide consumer-focused, comprehensive advice that considers all available options, and the suitability report helps deliver that in line with the FCA’s discussion paper.”
He added: “By breaking advice into shorter, focused documents, clients can more easily digest important information, leading to more informed conversations and greater confidence in the advice provided.
“Clarity and reassurance are paramount to fulfilling the expectations of Consumer Duty and will be central to expected changes to the mortgage market regulatory framework.”
More information on Air is available from the website https://airlaterlife.co.uk/. To access the report, log in to Air Sourcing.
