The Equity Release Council (“The Council”) is a voluntary body which aims to ensure that its members are highly professional and act with integrity and transparency in offering high-quality products and services to customers. In addition to the provisions in 4.1 (2) (b) above, lifetime mortgage products must also meet the following criteria, which should be included in the provider’s contract terms: Members may wish to note that the term “best price reasonably obtainable” is not the term generally used by professional surveyors, who use the term “market value” in accordance with the rules published by the Royal Institution of Chartered Surveyors. It sets the standards and principles for members of the Equity Release Council that are set out within this document. If excluded that Member shall cease to have any rights or privileges of membership and must return any certificates or cards or any other relevant materials denoting membership to the Council. 6.1 Members must act responsibly in recommending and releasing drawdown monies to customers by ensuring that customers: 6.3 Guidance for all members – Members should: Encourage customers to have a Power of Attorney (POA) in place where there is no current provision and to consider third-party access options in the absence of a POA and have clear policies and procedures in place that allows for additional flexibility while also safeguarding customers. The complainant should explain to us the impact that the actions of the member/ERC have had on them. The Equity Release Council and its Standards Board bring together the wider equity release sector in a shared objective of providing a safe mechanism for equity release to a much larger group of people,”  Chris Pond, Chair of the Standards Board. all the costs that you will have to bear in setting up the plan; what will happen if you wish to move to another property; and. Members of the Equity Release Council have to abide by a Code of Conduct that guarantees that our ethics and standards. Some firms may choose to provide the Suitability Report in written format. Equity release refers to a range of products that let an individual access the equity tied up in their home if they are over the age of 55. The method by which firms present the information required in a Suitability Report, and by which they seek confirmation from the customer that the information has been received, may vary from firm to firm according to their sales practices and the channel chosen by the customer. If you want to take out some of the cash tied up in your house to fund costs in retirement, then you need to feel you are being treated fairly and honestly at every step. The Solicitor who gives the customer independent legal advice about the contract should therefore be able to make this judgment, but if the Solicitor does not know the customer well, or has any doubts about the customer’s mental capacity, a medical certificate will usually be sought. However, where it is identified that there is a vulnerability or other issue, it may be necessary to refer to relevant sources of support. (Note – The 0.12 document has been renamed as version 9.0 to align with the Standards naming convention, as it replaces version 8.0). The update introduces an approach based on principles and consumer outcomes which reflects the latest thinking in financial services regulation and complements existing rules, safeguards and protections. The industry body, the Equity Release Council, sets standards and safeguards that serve to protect your financial future. The Council expects that all Members will be bound by the FCA’s rules on excessive charging which are set out within MCOB 12.5. requires help to hear, read or understand important information; does not speak English as a first language; has had a significant change in circumstances, e.g. The Standards Board is incorporated as part of the Equity Release Council and exists to ensure that equity release products are safe and reliable for consumers. If such a discussion does not take place at the customer’s request, the reason for not consulting with their family should be clearly documented, (b) The customer(s) has/have been advised of the risks, features and benefits of the relevant product, (c) The customer(s) has/have considered all alternative courses of action. contact all customers who are referred to them for advice by provider members with the aim of qualifying the need for advice. In particular, the customer should receive independent advice in the absence of any intended or potential beneficiary, to avoid any duress being exerted by such a person on the customer(s). It is very important that the person complaining can also demonstrate that detriment has been caused as a result of the member’s or ERC’s actions. Through these standards, members can guarantee their customers that they offer products and services which conform to the best practices of the sector… The criteria set out in provider members’ contract terms cannot be varied unilaterally, either by the provider member, or any person to whom the provider member may subsequently sell the loan or plan, unless the customer is in breach of the terms. The Council expects that, in such circumstances, the advising solicitor will be completely open with the customer as to the common link with the financial adviser, and will adhere to his or her discrete professional code of conduct, requiring him or her to act independently and in the best interests of the customer at all times, ensuing that any conflict of interests are transparent and properly managed. The Equity Release Council’s code of practice ensures that all member companies provide a full and easy to understand presentation of their plans. The Equity Release Council now sets even higher standards of conduct and practice for its members, who are mostly specialist lenders and advisers. FCA MCOB rules require that the adviser retains a copy of a record explaining the reasons for recommendation (considered here as the Suitability Report) for at least 3 years. An alternative property will be deemed suitable if the plan provider would normally issue a new plan on it to a new customer at the time of the move. And in some cases, it would not be prudent to continue with the drawdown request. There may be a particular role here for training for staff on how to identify changes in vulnerability and to respond accordingly. We consider that the following examples of best practice may help members: A review of continued suitability should consider: This advice should be documented in a written format to the customer, as per all the Rules and Guidance for new customers, but with specific emphasis on why replacing the existing plan was deemed appropriate. Vulnerability triggers can include: It is important that all firms have the capability to identify and respond to changes in customer vulnerability throughout the product term. 6.4 Guidance for Provider members – Members should: 6.5 Guidance for Adviser firms – Members should: The following non-exhaustive list sets out appropriate MI that member firms should consider implementing to monitor the quality and performance of their drawdown processes: Where possible firms should share this information with the Equity Release Council to inform future revisions to the Drawdown Standards. The Council’s standards set a best practice benchmark by providing a higher level of consumer protection than […] The Equity Release Council (ERC) is an expansion of what was previously SHIP (Safe Home Income Plans) and represents those who work in the equity release sector. This detriment could include both financial and non-financial detriment which typically covers distress, inconvenience, pain, suffering or damage to reputation. ERC members should have the opportunity to fully respond to complaints, and where possible put things right, before the Council considers them. The literature must explicitly state which standards are not met, and give an illustration of the types of risks this poses to a customer. The Setting the Standard Workshops look at best practice in the industry, and what advisers should be considering when they speak to their customers, to ensure good customer outcomes. The Council also considers it very important that the customer should signal receipt and acceptance of the Suitability Report. whether the provider requires a certificate, signed by an appropriately qualified medical practitioner who specialises in making these assessments, to confirm that the long-term care conditions have been met. Version 0.12 was approved by the Standards Board on the 10th September 2019 and by the Main Board on 23rd September 2019. Where the complaint concerns the advice or service provided by a solicitor or surveyor, it should be pursued first with the professional firm concerned and, failing an acceptable resolution, with the appropriate regulatory body, depending on the type of firm being complained about. Giving advice on a home reversion plan or lifetime mortgage is a regulated activity under the Financial Services and Markets Act 2000 and anyone carrying out such an activity must be appropriately authorised by the Regulator. It is up to firms to decide the most appropriate format in which to provide/offer this. The Equity Release Council has updated its industry standards in what is being called its largest evolution since it was established in 2012. This report will ideally be sent to the customer in advance of the meeting between the Solicitor and customer, to allow the customer time to read it and consider any points which need to be clarified. You can read more about the Equity Release Council below. 8.3 Requirements of the Solicitor who meets the customer. Your home. Where the customer is temporarily living outside the UK at the time the equity release contract is entered into, the Advising Solicitor must be registered with the appropriate jurisdiction in the UK but may instruct an Agent Solicitor outside the jurisdiction. It is important to understand the potential welfare benefits applicable to the customer (both pre and post transaction), and whether the release of equity might impact or curtail any existing or future benefits. The Checklist is designed to help ensure that no significant points are omitted when advising customers on equity release products, or when preparing the information to be provided to them in the Suitability Report. Examples could include: It is recommended that appropriate steps are taken to monitor frequency and reasons in line with the suite of policies that cover financial crime, vulnerability. It will remain the responsibility of the Advising Solicitor who appoints the Agent Solicitor to satisfy itself that said Agent Solicitor is appropriately qualified and registered. 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