Advisers believe there is room for improvement on meeting Consumer Duty obligations on the later life lending market, according to new research from Key Later Life Finance.

A study by the equity release adviser with over-50s specialists, wealth advisers and general advisers found that less than half (45%) are “very confident” they are currently meeting Consumer Duty obligations on later life lending.

Two out of five respondents (41%) said they are “quite confident” they are measuring up to Consumer Duty but admitted there was room for improvement, while a further 16% were only “slightly confident” and agreed they need to improve.

Key’s findings also indicated that three quarters (74%) of advisers are concerned about meeting Consumer Duty and regulatory requirements despite believing the later life lending market has strong potential for growth.

“Clients should be advised of all their options under Consumer Duty if good customer outcomes are to be achieved,” CEO at Key Advice, Will Hale, said. “Advisers who are concerned about meeting Consumer Duty obligations should be aware that there is support available to enable them to be fully compliant.

“Regulators have set out what is needed from advisers operating in the market and Consumer Duty obligations have emphasised the need to deliver good customer outcomes through ensuring that clients are informed of all their options.”

Key believes that all advisers need to offer the full range of options to over-50s customers including later life lending products to ensure good customer outcomes.

The equity release adviser has called for call recording of all meetings with over-50s clients to be introduced, believing this should form part of the Equity Release Council Standards and be considered good practice.

Key’s research found that around on in three (32%) advisers questioned have introduced mandatory call recording to improve their quality assurance processes for later life lending advice.

“Comprehensive conversations around what a customer may afford to repay to optimise cost of borrowing and or how health and lifestyle factors may positively influence the rate or LTV available are crucial if consistently good outcomes are to be achieved,” Hale added.

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