It effectively compels advisers to do what is widely accepted and established as constituting best practice. In this regard, existing advisers won’t have major adjustments to make to their processes.
The 12 point adviser checklist contains a few subtle tweaks and has grown to 13 points, now with a new requirement for a suitability report to be provided to clients. They will be asked to confirm receipt of, and acceptance with.
The literal interpretation of certain other checklist points remain a concern to many, but thankfully standards are continuously reviewed by the adviser standards working group, which I sit on, so doubtless improvements will arise due to the group’s input.
Providers will have to make the code of conduct available to customers, either directly or via the council’s website which shouldn’t stretch their IT resources too much.
But while its very much business as usual for advisers and providers, another party in the equity release supply chain is having to make what is arguably the single greatest change to its own modus operandi.
Solicitors will have to advise clients face-to-face. This is common practice for smaller regional law firms, but not always the case for some of the larger firms that have set up special equity release operations on a national basis, typically handling everything remotely by phone, post and email.
Inevitably clients’ costs will increase and time to completion will be extended in some cases, so we should help clients in setting their realistic expectations. On the plus side, the sector once more proves it takes its responsibilities seriously in protecting customers and delighting them.
Which, fundamentally, is surely what we are all about?
Simon Chalk is equity release technical manager at Age Partnership
