Consumer duty to the rescue
It seems like a catch-22 to me.
But in comes the consumer duty.
According to the FCA, the consumer duty means that lifetime mortgage advisers must communicate in a way which is clear, fair and not misleading, so that consumers can understand the product.
So does this mean we will be seeing even more of a crackdown on these misleading equity release adverts that plague our TVs?
It will also ensure consumers get appropriate information about the overall proposition; are made aware of the availability of alternative options; and make sure that advisers' recommendations are suitable, among other things.
So could it be that the consumer duty is the knight in shining armour the equity release market needed to boost its reputation?
It’s too early to tell right now as we are only two months in, but it seems promising.
For now, though, we can all keep an eye on those TV adverts and see if any noticeable changes are being made.
Amy Austin is news editor at FTAdviser
