Equity release is SAFER for brokers

1 September 2008

Although it will be a rival to Safe Home Income Plans, which has been operating since 1988, SAFER founder Colin Taylor, chief executive officer of Key Retirement Solutions, says he expects the two bodies to complement each other.

He says: “I’ve had discussions with SHIP and equity release providers and they support us. We’re not opposing SHIP - we want to work with it to look at the advice element.

“SHIP is a product provider’s organisation and looks at the advice provided for equity release from a different angle to how brokers would.”

SAFER has three core founding members - KRS, Age Partnership and Equity Release Solutions.

Taylor, who will also function as SAFER’s chairman, says the three firms’ combined distribution accounts for 50% of the equity release market.

He adds: “SAFER stands for safer advice for equity release. We believe that unless you are a specialist in this arena and take it seriously, you should not be in the market.”

Along with Taylor, SAFER’s board comprises Tim Loy, chief executive of Age Partnership, and Kevin Stelfox, managing director of Equity Release Solutions.

All three firms have committed themselves to SAFER’s 10-point code of conduct, which stipulates that firms must recommend clear, honest, qualified advice about equity release products from across the market.

They must also adhere to Treating Customers Fairly principles, provide free consultations and ensure customers understand the value of their property and estate post-equity release.

Andrea Rozario, director-general of SHIP, says: “As an industry we have a responsibility to ensure plan holders are protected.

“This shows initiative and enthusiasm from brokers and a dedication to consumers. It is a positive step for the sector.”