MMR: No non-advised sales for equity release and SRB
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Equity release and sale-and-rent-back customers must always be given advice, the Financial Services Authority is proposing.
Its final consultation paper of the Mortgage Market Review, published today, says both consumer groups are too vulnerable to receive a non-advised sale.
However, it says that equity release customers have the right to reject the advice of an intermediary and opt for a product of their choice on an execution-only basis, provided they are in a position to give specific instructions about the product they wish to purchase.
But the FSA says such provision would not be appropriate for sale-and-rent-back customers, given the particular vulnerability of many.
In addition, the regulator is proposing to bring into effect a single equity release market, combining lifetime mortgages and home reversion plans.
It says this will mean that brokers offering only lifetime mortgages or home reversion plans will have to explain to customers that their service is limited.
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