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Brokers warned on equity release

Experts have warned that equity release could be a ticking compliance time bomb for brokers new to it.

Julie Alderson, director at compliance consultancy Management Solutions 2000, compares equity release with pensions and endowments, saying it could be years before the market sees the effects of inappropriate advice.

She says: “Many brokers are looking for additional revenue but equity release is a compliance time bomb.

“It’s a high risk product and Financial Services Authority research shows some brokers don’t know how to help clients understand its effect on taxes, long-term care or benefits. If they are unclear, they should steer clear.”

Nigel Barlow, head of retirement solutions at Just Retirement, says: “Many brokers are becoming qualified to sell equity release but should refer clients to experts if they are uncomfortable.”


M2000 sheds M2i

Mortgage 2000 is transferring the ownership and running of its M2i compliance service to Ingard Intermediary Services.

Tax change won’t help South-East

The National Association of Estate Agents says changes to Stamp Duty won’t have a significant impact in the South-East but that the move is a step in the right direction.

CRM can leave brokers waving not drowning

Association of Mortgage Intermediaries director-general Chris Cummings is correct when he says customer relationship management is the key to success for brokers (Mortgage Strategy September 1).

A failure to tackle liquidity

The Intermediary Mortgage Lenders Association says the government’s mortgage rescue package fails to address underlying liquidity problems but hopes the completion of Sir James Crosby’s housing finance review will free up additional funding for lenders.

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]


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