Equity release adviser’s TV ad banned

Published on

The Advertising Standards Authority (ASA) has banned a television ad from Age Partnership after ruling that it was likely to mislead.

The TV ad for Age Partnership, an equity release adviser and retirement income service provider, seen on 5 and 9 April 2023, began with a woman introducing herself and her home, and who then stated, “We are actually sitting in, and on, assets, but they are bricks and mortar. They don’t buy you a new kitchen. And so, at our age, what are we going to do? Speaking to family solicitors they actually suggested equity release. It enables me to stay in my own home and to be happier with my life. I was talking to a friend and she said I’ve heard some good things about Age Partnership. Process was very easy, it was actually quite seamless. It has made a difference to my life.”

The complainants, who believed family solicitors were not typically authorised to offer financial advice, challenged whether the ad was misleading.

Age Partnership Ltd said the woman in the ad was a genuine Age Partnership customer who discussed her own actual experience in applying for an equity release policy in an unscripted manner while being filmed. The reference to solicitor was unprompted and arose when the woman outlined how she first heard about equity release policies. Age Partnership said solicitors could offer guidance on equity release policies, and that in the woman’s case a family solicitor had provided assistance in understanding the legal implications, risks and benefits associated with the product.

Clearcast said they received a signed testimonial form which confirmed the woman’s experience with equity release and Age Partnership was genuine, including that she spoke to her family’s solicitors about equity release. As a result of that, they said the ad suggested legal, rather than financial, advice was provided. They understood solicitors could offer advice on equity release policies.

The ASA understood that while solicitors were involved in the equity release policy application process, their role was to ensure applicants understood the legal obligations they were taking on, and the risk, rewards and long-term nature of the policy. This did not necessarily extend to offering financial advice in relation to a specific policy.

The ad watchdog considered consumers would understand the statement “Speaking to family solicitors they actually suggested equity release” as recommendation by a family solicitor that the individual should apply for an equity release policy. The ASA acknowledged the ad did not state or imply solicitors were the only source of advice for taking out such policies, or discourage consumers from speaking to a financial adviser, and the ad was a reflection of a customer’s own experience. However, the ASA considered the ad implied a solicitor had recommended a financial instrument as a way to solve a specific financial problem. This would be understood as financial advice, which went beyond explaining the legal obligations, risks, rewards and long-term nature of equity release.

The ad regulator therefore concluded the ad breached BCAP Code Rule 3.1 (Misleading advertising) and was likely to mislead, because it suggested family solicitors were a suitable source of financial advice when considering an equity release policy.

The ASA ruled that the ad must not appear again in the form complained of. It told Age Partnership to ensure their ads did not suggest financial advice about equity release could be sought from non-authorised sources.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

BetterHome Group UK appoints Anthony Glasgow as chief operating officer

BetterHome Group UK has appointed former Connells Group executive Anthony Glasgow as chief operating...

Sub-5% mortgage fixes virtually wiped out as rates surge

The number of sub-5% fixed mortgage deals has collapsed by 99% since the beginning...

The Leeds highlights £165k mortgage borrowing potential for buyers earning £30k

Leeds Building Society is urging brokers to consider the mortgage options available to lower-paid...

Disabled mortgage applicants face inconsistent treatment of benefit income

Disabled consumers continue to face uneven treatment across financial services, with new research highlighting...

Access FS adds Iress sourcing data to Elev8 adviser platform

Access FS has integrated Iress mortgage and protection sourcing data into Elev8, the CRM...

Latest publication

Other news

BetterHome Group UK appoints Anthony Glasgow as chief operating officer

BetterHome Group UK has appointed former Connells Group executive Anthony Glasgow as chief operating...

Sub-5% mortgage fixes virtually wiped out as rates surge

The number of sub-5% fixed mortgage deals has collapsed by 99% since the beginning...

The Leeds highlights £165k mortgage borrowing potential for buyers earning £30k

Leeds Building Society is urging brokers to consider the mortgage options available to lower-paid...