July 15, 2020

Improving industry standards the L&G way

Sara McLeish, CEO of Legal & General Financial Advice says the firm is continually improving industry standards, here she sets out how.

The equity release sector has made fantastic progress, with a clearer focus on quality advice and customer needs helping to bring it into the mainstream. The continued raising of standards from the ERC has been fundamental to this shift, and I was delighted to see them continue to drive improvements across the market with the expansion of its checklist for advisers, with an extra focus on vulnerable customers.

Continually striving for a consistent standard of advice for consumers is vitally important as the popularity of equity release increases. Data from the Equity Release Council has shown huge growth in the later life lending market in recent years. With this, we’ve seen innovation; greater choice, flexibility and increasingly competitive rates. In tandem, we have also seen greater emphasis on the suitability of advice, particularly for those who are vulnerable and may not fully understanding the implications of borrowing in later life.

We are, and always have been, acutely aware of the impact that financial and at-retirement products can have on our customers’ lives. This is more important than ever in the current climate, as many UK households find themselves in financial difficulty as a result on the Covid-19 pandemic. We know, from our own research, that a significant number of people approaching retirement age are re-thinking their retirement plans.

Some of these people will see equity release as a potential avenue to release much-needed funds, to supplement their income, or to support family members hit by the crisis – our research found that half of all over-50s are concerned about their loved ones’ finances.

The improved checklist is a helpful tool to spot those in difficulty, and the wider points raised, such as eligibility for state benefits or grants are also welcome improvements. These are going to be key in the coming months when many people will have to reconsider their financial plans due to the fallout from the Covid-19 crisis.

The views of contributors are not necessarily those of the Council.

arrow up