Speaking at a roundtable event hosted by Air on the theme of comprehensive conversations in the later life lending sector, representatives were asked how much work needed to be done before holistic advice was a standard.
Will Hale, group director of Key Group, said: “The aspiration we should have as an industry is a customer should be able to come into an advice process from any part of the market, mainstream mortgage adviser, later life specialist, financial adviser and get the right outcome for their individual circumstances, irrespective of scope of service or the product range that an individual firm offers.
“How far do I think we are away from that? In all honesty, quite some distance. But the steps I’m seeing in the market at the moment are showing quick progression towards that aspiration.”
He said reaching this stage was a “tough journey” and the sector was not there currently, but advisers should be aware that there was a need for change.
However, Hale predicted that in a year’s time, “meaningful progress” should have been made.
The role of technology
It was also asked what aspect of the process or adviser education would encourage this change the most effectively or the fastest.
Paul Glynn, CEO of Air, said the integrations being made with the group’s technology across the sector would “help to accelerate a better advice journey for our customers”.
Keith Richards, CEO of Consumer Duty Alliance, said there was a reason the Financial Conduct Authority (FCA) was one of the first regulators to launch a technology sandbox, indicating technology would play a “massive role” in supporting a holistic advice process.
Ben Waugh, managing director of More2life, said there was a clear appetite for education and understanding of how the later life market was changing, based on the attendance and engagement of the lender’s webinars and events.
As for those who do not catch up with changes, Waugh added: “We will simply not give product to certain distribution channels unless we are confident that the product is properly understood… which is under Consumer Duty, a big change but one I think will help incentivise firms to make sure they are absolutely on their A game and doing the right thing for customers.
“Otherwise, we will step in as a lender and say ‘sorry, you don’t get the product’.”
Earlier this week, it was reported that over £2trn was on the table to buy lender back books ahead of the Consumer Duty deadline.
