On Wednesday 13 November, the Financial Services Consumer Panel and StepChange Debt Charity co-hosted a Roundtable discussion on the equity release market.
The overall objective of the roundtable was to debate how the market can be improved particularly given the government’s policy ambition to position equity release as one means of solving two major issues of later life; low retirement income and long term care funding.
The Consumer Panel and StepChange have concerns about how the equity release market is currently working. In particular:
- Poor competition and consumer choice brought about by the inter-relationship between some of the largest providers and advisers.
- Confusing, restrictive and changeable product terms.
- High and unpredictable exit penalties and
- The lack of product innovation and entry to the market by new providers
It is our joint view that without concerted effort to improve the market, equity release will not deliver good outcomes for some consumers.
The roundtable was well attended by leading industry experts, consumer groups, government officials and the regulator. Full notes of the meeting are available here.
Teresa Fritz, Consumer Panel member commented:
“I am pleased that the debate about how to ensure that this market works in the interest of consumers has finally begun. Although industry and consumer groups didn’t agree on all things I was reassured that we had a frank exchange of dialogue and the commitment to continue engagement”.
Tom Moloney, StepChange Equity Release manager, said:
“As an industry we must challenge ourselves to keep moving forward, welcome product innovation, improve advice standards and encourage new entrants to the market. Without improvements, the potential benefits of equity release to numerous consumers could be lost”.
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