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FCA reports key findings on equity release sales and advice process

The FCA found 3 significant areas of concern relating to the suitability of advice that firms provided, which could increase the risk of harm to consumers in the equity release market:

  • Insufficient personalisation of advice;
  • Insufficient challenging of customer assumptions; and
  • Lack of evidence to support the suitability of advice.

Firms must therefore ensure that:

  • they take reasonable steps to obtain sufficient information from customers to provide advice;
  • the advice given is suitable when giving advice to enter into an equity release transaction (for the new transactions as well as amendments to existing equity release products); and
  • they collect and retain the necessary evidence to support that assessment of the suitability of advice and how it was determined.

Link to related article: https://www.fca.org.uk/publications/multi-firm-reviews/equity-release-sales-and-advice-process-key-findings

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