New data reveals widespread vulnerability among equity release clients
Whole of market equity release specialists Equity Release Group (ERG) has raised concerns about the financial advice sector’s approach to vulnerable customers, suggesting that vulnerability is still often viewed as an exception rather than a fundamental part of the client experience.
ERG’s advisory division, Equity Release Supermarket (ERS), reported that 46% of its clients were identified as vulnerable following the introduction of its integrated Factfind system last year.
This finding aligns with data from the Financial Conduct Authority (FCA), which noted that only 40% of vulnerable individuals disclose their circumstances to advisers, with even fewer encouraged to do so.
“Our latest data is a statistic we don’t shy away from, but rather one we need to be incredibly mindful of, and support through systematic change,” said Mark Gregory (pictured right), founder and chief executive of Equity Release Group. “With the implementation of robust and comprehensive systems, industry wide, we’re confident that this will result in heightened protection for vulnerable customers, as well as empowering every customer along the way.
“We need this consistency across the industry so that the customer remains front and centre of all we do. We want to encourage open, honest and proactive discussions around this, to ensure that our customer journey isn’t merely an exercise but a core component of providing responsible financial advice throughout.”
Earlier this year, ERG announced a partnership with StepChange, the UK’s largest debt charity, to serve as its exclusive equity release and later life lending advice partner. The collaboration aims to strengthen support for financially vulnerable individuals and broaden the range of solutions available through StepChange.
Donna Francis, former chief operating officer at the Equity Release Council, joined ERG earlier this year to help advance market scalability and security, supporting the group’s focus on raising industry standards.
“Our aim is always to push for greater accessibility and make it easier for people to explore and access all later life lending solutions,” Gregory said. “Delivering a good customer outcome for all, including those who find themselves in a vulnerable situation has taken us time to craft, but we are relentless in our commitment to customer welfare, which goes beyond the realms of Consumer Duty.”
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