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Equity release advisers increasing focus on vulnerability

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  • 11/06/2020
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Equity release advisers increasing focus on vulnerability
A quarter of brokers are treating all customers as potentially vulnerable during the coronavirus, research suggested.

 

One in three has increased or reviewed existing checks on older customers under the current climate, according to a survey of 250 brokers and IFAs who refer equity release customers to Key Partnerships.

A vulnerable customer is defined by the Financial Conduct Authority (FCA) as someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.

One in 11 advisers reported they were assuming people who wanted to use equity release for ‘immediate needs’ during the crisis were under pressure and more likely to be vulnerable.

A third of advisers said concerns over property prices were driving more clients to contact them with another 29 per cent said clients having more time on their hands meant contact had increased.

However the rise in enquiries was not translating into business, as more than half of advisers said clients were reluctant to commit to major decisions currently.

Jason Ruse, business development director at Key Partnerships said: “Advisers have proved to be resilient and adaptable throughout the crisis despite the challenges of changing working practices and the financial impact on businesses.

“Vulnerability was a hot topic before the crisis hit and it is good to see that this remains at the forefront of people’s minds and we reviewed our vulnerability policy for added due diligence in the current times.

“While not all older customers are vulnerable, they are an age group which is more likely to be vulnerable and self-isolation as well as the impact of the coronavirus on pensions and savings is likely to have seen more people considering their options.

“The focus on ensuring vulnerability is addressed is particularly important and the numbers of firms which have taken action or reviewed practices to ensure they are supporting clients underlines how important the issue is.”

 

 

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