The Equity Release Council has launched new guidance for providers to help customers understand their equity release products as their needs evolve.

A 17-page post-completion communications guide has been developed by a Council working group comprising providers, funders, advisers and other industry professionals.

The Council revealed it is aimed at advisers and providers and supports firms’ requirements under the consumer understanding and support outcomes of the Financial Conduct Authority’s Consumer Duty. It outlines regulatory requirements before recommending additional steps to enhance understanding and support good consumer outcomes.

Examples of these recommended communications include a product overview to be sent to the surviving applicant after the other passes away to remind them about the features of the product. The Council suggested this could be helpful if the surviving applicant was reliant on their partner for help with financial matters.

The guidance also includes a leaflet for family members that explains what equity release is and why a loved one might have taken it out, which could be issued when the plan ends. This could help if customers did not follow the Council’s guidance to consult with their families before taking out equity release, which is not always possible.

“Equity release has traditionally been a long-term commitment, and while that remains true, the freedom and flexibilities of today’s products create more options for customers to consider over time,” commented head of risk, policy and compliance at the Equity Release Council, Kelly Melville-Kelly.

“We have worked hard with members to look at how high standards of service can be continued long after the funds have first been released, considering changing circumstances such as the death of a spouse, enquiries about further advances or adding a new power of attorney.

“Equity release receives relatively few complaints and only a handful are upheld. However, a significant portion of those complaints are from family members, which is why we’ve included recommendations on how to support them too.

“It’s important that communications evolve along with the products to help older people and their families make the most of the products to live independent lives for longer and pass on living inheritances.”

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