The Equity Release Group (ERG) has warned that the financial advice industry is failing to give vulnerable customers the level of support they need, despite regulators highlighting the scale of the problem.
The firm said vulnerability is still treated as an exception rather than a central part of the customer journey, and called for systematic change to bring greater consistency across the sector.
Its advisory arm, Equity Release Supermarket, reported that 46% of customers it dealt with over the past year were identified as vulnerable. The Financial Conduct Authority has raised similar concerns, noting that only 40% of vulnerable customers disclose their personal circumstances to advisers, and fewer still are encouraged to do so.
Mark Gregory, founder and chief executive of Equity Release Group, said: “Our latest data is a statistic we don’t shy away from, but rather one we need to be incredibly mindful of, and support through systematic change.
“With the implementation of robust and comprehensive systems, industry wide, we’re confident that this will result in heightened protection for vulnerable customers, as well as empowering every customer along the way.
“We need this consistency across the industry so that the customer remains front and centre of all we do.”
Gregory added that the Group’s fully integrated digital factfind and product confirmation letter have been designed to provide enhanced usability, compliance and regulatory oversight, all of which can help advisers to better identify and support customers who may be vulnerable.
Equity Release Group said the findings underline its broader commitment to customer well-being. Earlier this year, the business announced a partnership with StepChange, the UK’s largest debt charity, to act as its exclusive equity release and later life lending advice partner. The tie-up is intended to support those in financially vulnerable situations while broadening the range of solutions available to StepChange clients.
The Group has also strengthened its leadership team, bringing in Donna Francis, former chief operating officer of the Equity Release Council, to help drive scalability and improve standards across the market.
Gregory said: “Our aim is always to push for greater accessibility and make it easier for people to explore and access all later life lending solutions.
“Delivering a good customer outcome for all, including those who find themselves in a vulnerable situation has taken us time to craft, but we are relentless in our commitment to customer welfare, which goes beyond the realms of Consumer Duty.”
