The handbook will be available to ERC’s membership of over 75 firms and 1,900 registered individuals, which covers product providers, regulated financial advisers, solicitors, surveyors and other professionals.
The guide can be used as a “practical toolkit when developing new communications or updating existing ones”.
It covers the importance of using simple, jargon-free language and ensuring that documents are structured and designed in a user-friendly way.
The ERC said that research from the National Literacy Trust shows that one in six adults have a reading age of 11 or less.
The Financial Conduct Authority (FCA) has urged firms to ensure customer communications are clear, fair and not misleading, making this a key part of Consumer Duty.
The Financial Ombudsman Service (FOS) also reiterates the importance of document readability to avoid consumer disputes.
‘Vital that customers understand their options’
Jim Boyd (pictured), ERC CEO, said: “This guide builds on a cast-iron commitment that was enshrined in the very first equity release industry standards more than 30 years ago to provide customers with fair, simple and complete presentations of information.
“With more features and flexibilities available on the market than ever before, it is vital that customers understand their options, so they are empowered to make informed financial decisions. This will deliver a lasting benefit to both customers and their families.
“Working with Fairer Finance to produce this guide will support our members to bring modern equity release products to life for customers in ways that are accessible, understandable and easy to digest.”
James Daley, founder and managing director of Fairer Finance, said: “It’s fantastic to see the Equity Release Council supporting its members to communicate clearly with their customers.
“Equity release is a complex product, and it’s crucial that customers can understand exactly what they’re signing up to.
“Our guide provides practical advice that will make it easier for lenders and brokers to write, design and structure their documents in a way that is accessible for as many customers as possible.”
Many companies have signed up to the ERC in the past year, with Nokkel being the most recent one in March this year.
