You are here: Home - News -

Simon Chalk blasts Key Partnerships’ ‘dabbling’ comments

by:
  • 13/05/2015
  • 0
Simon Chalk blasts Key Partnerships’ ‘dabbling’ comments
Age Partnership technical manager Simon Chalk, has criticised comments made by Key Partnership Group that warned equity release ‘dabblers’ could be subject to potential regulatory pitfalls.

Chalk (pictured) said the equity release referral service firm had used “scaremongering tactics” in order to “crassly guide” advisers towards referral rather than carrying out business for themselves.

Key Partnerships said advisers that were not whole of market could run the risk of unintentionally failing to offer clients the best service, as they may not be aware of market innovation.

But Chalk said the comments would scare off advisers who expressed an interest in equity release, and pointed intermediaries towards support networks such as the Equity Release Council and mortgage clubs.

“I think they’ve [Key Partnerships] used scaremongering tactics and it’s quite wrong for them to have done so,” he said.

“What the FCA has made clear is that they will be mindful or looking out for people who are doing equity release advice business as a bit of a sideline to supplementing existing business streams. You can’t become an expert in any field overnight, but what concerns me is the tone of Key Partnerships’ words which seem to be trying to frighten people off and rather crassly guide them into their arms for a referral relationship.”

Chalk said it was negligible whether advisers were conducting just a handful or a hundred of equity release cases a year but added what mattered most was ensuring the correct procedures were in place.

“If anything this market needs more people advising on it and we need to see that growth because there are so many customers out there that still don’t know the options available to them. The adviser community should be embracing equity release right now and making the decision which way to go, do they advise or refer?” he added.

‘Significant risk’

Will Hale, business development director, Key Retirement Group, said the firm’s comments were “far from scaremongering” but instead intended to highlight opportunities as well as risks in the market for advisers.

“Equity release is a specialist market and there is a significant risk to customers if they do not receive the best possible advice. It is unrealistic to think that many advisers who complete just one or two cases a year can do so profitably given the extensive research and analysis required to ensure that the best rate, optimal LTV and most appropriate set of product features are sourced to match a particular customer’s circumstances – including their health and lifestyle.”

Hale agreed there was a need for more advisers to serve increased customer demand but noted that this needed to be weighed up against the risks involved.

“For those that want to advise, there is excellent support available from lenders and the Equity Release Council in terms of achieving the necessary qualifications and maintaining competency. Other advisers may decide that referring to a trusted specialist partner may be a more commercially viable way of ensuring their customers receive the best outcomes.”

There are 0 Comment(s)

You may also be interested in