POLICY AND COMMUNICATIONS UPDATE
External communications
Media profile
The Equity Release Council’s (the Council) Spring 2019 Market Report was the most widely covered edition since the series began in 2014, leading on the message that equity release has now entered the financial mainstream. The report showed that equity release occupies an increasingly central role in the UK, as it continues to meet a variety of consumer needs in later life. The report achieved nearly 60 pieces of media coverage, with standout articles in The Times, declaring that “Unlocking home value comes of age”, and additional prominent pieces in the Financial Times, Daily Express, Daily Mail, accompanied by trade coverage and positive industry responses.
Another highlight was the Council’s Q1 2019 figures, which were launched to media in April. The latest figures helped to demonstrate the busiest start to any year on record for the market and resulted in almost 50 pieces of coverage including the Daily Mail and The Times, highlighting the continued growth in consumer demand for equity release.
Following the Council’s 2019 AGM, an announcement was shared with media highlighting the latest board appointments and positive new initiatives launched by the Council to help new and existing practitioners in the growing market. Chris Fay’s appointment as Communications Manager was also announced to media, demonstrating continued development of the Council in response to growing consumer demand.
Other significant proactive media opportunities included Jim Boyd’s “In the Spotlight” profile interview with Financial Reporter in which he discussed the importance of raising awareness of the consumer safeguards that the Council has put in place to protect customers, and how the sector can continue to improve its image with consumers. Following a meeting with the Evening Standard’s Homes & Property Editor, Janice Morley, a feature on equity release was published in the Homes and Property supplement. It highlighted the sector’s product innovation and the falling interest rates of equity release. The article also pointed to the robust standards introduced by the Council to protect consumers and advised readers to always go through a member of the Equity Release Council. Additionally, it featured a case study sourced through Key of someone who used equity release to support her daughter.
The Council’s thought leadership report in partnership with Key, Beyond Bricks & Mortar: the changing role of property in later life financial plans continued to progress over the course of the quarter. The report highlights the changing role of, and attitudes towards, property in later life financial plans. The report, published on June 17th, was launched with a Parliamentary Reception event attended by key parliamentary and industry stakeholders, please see more detail below.
Over the course of Q2, the Council continued to engage with key media targets as part of the Council’s ongoing media engagement programme, which aims to raise awareness of the growth of the market, as well as the safeguards that are in place to protect consumers. David Burrowes and Jim Boyd’s meeting with Lindsay Cook, the FT’s Money Mentor, led to a balanced and informative double page feature on equity release, which appeared as the lead story in FT Money that weekend, followed by a dedicated segment on equity release on their weekly podcast. Media briefings were also arranged with Sam Partington (Daily Mail), Imogen Tew (FT Adviser) and Michael Lloyd (Mortgage Introducer).
Press office
Continued media interest in the equity release market was evidenced by the number of requests for comments that came through to the press office over the course of the quarter.
The Council continued to liaise extensively with the Daily Mail, responding to enquiries from Sam Partington on early repayment charges, the pros and cons of equity release and the proportion of advisers who are single tied versus whole of market. Commentary was provided for James Burton on the growth of the equity release market, standards and regulation. While responses were also shared with Louise Eccles on downsizing and equity release, particularly whether the rise in equity release is due to older homeowners struggling to sell their homes and downsize in the current market.
The Council also managed enquiries from national publications including The Guardian and The Times, along with more specialist titles such as Investors Chronicle and Mortgage Strategy.
Public Policy
Regulatory
Q2 continued to be very active for the regulator as the FCA published four papers on issues directly relevant to the equity release market. The first of these was a call for input on the effectiveness of the Retail Distribution Review (RDR) and Financial Advice Market Review (FAMR). The Council utilised this opportunity to highlight the issues caused by siloed advice and the greater need for holistic guidance in retirement products in our submission to the FCA.
The Council is currently engaging with interested parties to gather views on the remaining three papers from the FCA and provided an update on these at the most recent PCC meeting. Work is ongoing to formulate a response to the FCA consultation paper on Mortgage Advice and Selling Standards that will respond to several key principles regarding advice and consumer choice that directly impact the equity release market. Additionally, work on the response to the FCA consultation paper on Mortgage Customers: proposed changes to responsible lending rules and guidance continued. This consultation seeks to address the Mortgage Prisoners issue that has been raised following the Mortgage Market Study. The Council’s response will focus on how potential changes to the affordability criteria could impact our market. Regarding the discussion paper on Intergenerational Differences, the Council’s response will focus on promoting the role that equity release can play in aiding social mobility. The Council will also be represented at the FCA’s Summer Conference on the issue. Members are encouraged to feed in their views to each of these strands of work.
The latest FCA complaints data was published towards the end of April, highlighting positive results for equity release, which remains the least complained about product by volume of complaints received. Reactive comments were drafted in response to the report.
Finally, Damian Green MP’s report, in partnership with CPS, “Fixing the Care Crisis” was published and the Council provided feedback on the House of Lords Committee on Intergenerational Fairness & Provision’s final report. It calls on the government to take steps to deliver a fairer society by providing young people with support in the housing and employment sector, as well as delivering better in-work training.
Political engagement
Organisation for the Equity Release Council’s Parliamentary Reception got underway in Q2. The Parliamentary Reception featured keynote speeches from the Minister for Pensions and Financial Inclusion, Guy Opperman MP and the Shadow Financial Secretary to the Treasury, Anneliese Dodds MP, as well as remarks from the Council’s Chairman David Burrowes and sponsor Simon Thompson, CEO KR Group. The event launched the thought leadership report: Beyond Bricks & Mortar: the changing role of property in later life financial plans.
Arrangements for the upcoming Roundtable event, kindly sponsored by Lord Holmes of Richmond and Key Retirement Group, also got underway and will include Nicky Morgan MP (Chair of the Treasury Select Committee) as the keynote speaker.
Over the course of Q2, the Council also attended the meetings held by the APPG’s for Social Care, Longevity, and Ageing and Older People. Monitoring for the activity of these APPG’s as well as all other relevant APPG’s is ongoing.
The Council has also approached several Parliamentarians to raise further awareness of the role of equity release, the importance of standards, and the ways in which consumers can benefit.
