JEREZ 2006: Toxic equity release market puts brokers off

Concerns are mounting that brokers are shying away from offering equity release products due to their perceived perception from both the public and the regulator.

Delegates at this mornings opening session on new business opportunities said that they had steared clear of the market due to the associated risks.

The Financial Services Authority has previously called the market toxic and historic problems in the sector have all added to brokers woes.

Chris Cummings, director general of the Association of Mortgage Intermediaries and AIFA, says: “In conversations with the FSA it has told me that brokers that do too much equity release is high risk, but also brokers that do too little is high risk. That forces us to ask how many cases brokers should be doing a week!”