As it stands, if a client was to purchase an equity release product via a broker for about £200,000 and release £10,000 at the time of purchase, the broker would only receive commission on that £10,000 and not any amount released after that date.
SLB plans to change this so that the broker would receive commission on all money released through the client, even 10 years down the line.
Angus Macleod, spokesperson for SLB, says: “We are looking at the idea and talking to brokers about it. We always keep an eye on brokers' commissions as it encourages business.”
Dean Mirfin, business development director at Key Retirement Solutions, says: “I haven't heard anything from SLB about this but it would be good all round – it would generate more business for SLB and also benefit brokers.”