The financial services industry has not done itself any favours through the years and earned itself a tainted reputation in the UK. From the latest happenings of the credit crunch to the endowment scandal in the 1980s, financial institutions have struggled to gain the trust of consumers across the country. Setting common standards of what one can expect from an interaction with a financial institution is clearly a step forward in the right direction, however the extent to which it will be effective will vary across the industry.

The Equity Release Solicitors Alliance has attempted to examine what constitutes good and sound advice and what advisers in this area should concentrate on. They have concluded that there are essentially three things that advisers and consumers should adopt when considering equity release. Firstly, an equity release adviser should focus on researching the ‘whole of the market’ of providers, plans and products and of course communicate this to their clients in a desirable and timely manner. Secondly, the next most important aspect is to ensure that there is clarity of advice given.

Finally, the research highlighted the importance of consumers, especially elderly people, to seek clarity on their financial options and carefully consider all avenues prior to opting for an equity release. Both individuals and advisers have a responsibility to ensure that this is carried out.

Individuals do have the ability, and should also do some initial research prior to seeking advice, as it will ensure that they have a good grasp of the offers and options available to help the adviser match their needs with the right product.