Equity Release Group has welcomed the Financial Conduct Authority’s Later Life Mortgages Market Study, after contributing insight to the regulator on advice, technology and consumer engagement in the sector.
The FCA study will examine whether the later life lending market is working effectively and delivering good outcomes for consumers, as borrowing needs in later life become more complex.
Equity Release Group said it has held discussions with the regulator during the process, with Mark Gregory, founder and CEO, and Graham Evans, chief compliance officer, providing insight from the group’s work across consumer advice and technology infrastructure.
The business said its contribution has focused on the wider market ecosystem affecting accessibility and consumer outcomes, rather than product suitability alone.
This included feedback on adviser journeys, sourcing systems, operational inefficiencies, data accessibility, consumer understanding and barriers affecting innovation and competition across the market.
Gregory (pictured) said: “The FCA’s market study comes at a hugely important moment for the later life lending sector.
“The market has evolved rapidly in recent years, but many of the operational requirements haven’t moved at the same pace. What consumers now need from equity release is changing, and the way firms support advisers and customers must evolve alongside that.
“Our discussions with the FCA have focused on the practical realities of how the market operates day-to-day for advisers, firms and consumers. This goes beyond products themselves and looks at the wider infrastructure, alongside the consumer journey challenges.”
The study comes amid increased regulatory scrutiny of the equity release and later life lending market, alongside greater Consumer Duty expectations and rising demand for more holistic financial planning.
Equity Release Group said it welcomed the review as an opportunity to consider how the market can develop while maintaining consumer protection and advice standards.
The firm is expected to launch its new platform this spring. TERN – The Equity Release Network is a specialist adviser proposition designed to help firms manage market complexity, regulatory expectations and operational pressures.
The platform brings together compliance oversight, technology, sourcing, training and business consultancy to support adviser firms working in later life lending.
Gregory added: “Advisers now need the right tools, infrastructure and support to deliver in today’s market and keep pace with the changing demands of consumers.
“We believe that the FCA’s study creates an important opportunity for the industry to look at the market more holistically and identify where greater efficiencies can be achieved for both advisers and consumers.”
The group said it welcomed the opportunity to support efforts to ensure the later life lending sector remains innovative and accessible as consumer needs continue to evolve, while maintaining high standards.
