The Equity Release Council’s membership will expand to include intermediaries, lawyers, surveyors following its relaunch as The Equity Release Council.
The consolidated membership will cover all aspects of equity release, including the advice sector in its rebrand away from lender-only trade body Safe Home Income Plans (SHIP).
Members must sign up to six customer guarantees, including the borrower’s right to remain in a property for life and the right to move a plan to another property without penalty. Other guarantees include simple, clear information on any product, the right to an independent solicitor and a no negative equity guarantee.
In the coming months, the trade body plans to launch a new code of conduct in consultation with the expanded membership. The Council expects its logo to become a quality mark which members can display to denote standards of advice and product provision.
ERC’s main remit is to protect consumers and increase education, awareness and understanding of how equity release works and the safeguards in place for consumers.
The Council has launched a website to aid consumer education at www.equityreleasecouncil.com offering generic information on the products and potential uses of equity release and a membership listing for consumers.
The Equity Release Council will be headed by the chair, Nigel Waterson, who will oversee the direction of the organisation and the director general, Andrea Rozario, who will take responsibility for the day-to-day running of the Council.
The Standards Board, headed by Chris Pond, aims to maintain the principles the Council members must adhere to with the help of The Council’s Technical Committees.
Andrea Rozario, director general of The Equity Release Council, said: “A tremendous amount of work has gone into the design of the structure for the new Equity Release Council and after many months of discussions with stakeholders across the industry we are now excited and very confident that this leap forward is most definitely the right thing to do and at precisely the correct time.
Chris Pond, chair of the Equity Release Council’s Standards Board, said: “Equity release could help many people meet their needs in retirement – a better quality of life, meeting the costs of long-term care, giving a helping hand to a younger generation or just clearing debts. But the market for equity release can only grow if the public and policymakers have confidence that the highest standards of consumer protection will be maintained.
“That’s why it’s important that all those engaged in equity release sign up to a code of conduct that meets consumer needs. The Equity Release Council will fulfil a vital role in building on the work of SHIP by extending that commitment throughout the industry”.
For Mortgage Solutions’ exclusive interview with Chris Pond, click here.
