Consumer Duty

The FCA's Consumer Duty is a set standard to deliver best outcomes for consumers, by placing greater expectations on lenders and advisers. Explore how this affects equity release advisers and us as a lender.

What is Consumer Duty?

The FCA Consumer Duty sets the standard that firms should give to customers in retail financial markets and sets expectations that can be applied to products, services, and business models.

It's designed to guarantee that customers are at the heart of business practices. Providing products and services that meet their needs and communicating to customers in a way that enables them to make informed decisions about their finances.

Our fair value product statements

We've detailed our target market and distribution strategy for each lifetime mortgage product. These product statements illustrate how we design, monitor, and review our products to ensure ongoing fair value and alignment with the financial objectives of consumers, including those who are vulnerable.

The 3 cross-cutting rules

Advisers' main area of focus are the three cross-cutting rules of conduct set by the FCA. These outline how to deliver the best outcomes for customers.

Cross-cutting rule 1: Acting in good faith

Explore how acting honestly and openly is officially defined and why this impacts your firm's culture.

Cross-cutting rule 2: Avoid causing foreseeable harm

Learn about how to keep customers' best interests at the forefront.

Cross-cutting rule 3: Enabling customers to pursue their financial objectives

Find out how you can empower customers to make informed decisions.

The 4 consumer outcomes

Both advisers and lenders are accountable for good consumer outcomes and safeguarding customers. Like any other financial service, the equity release process must abide by the four outcomes.

What we are doing as lenders

Having won multiple industry awards for our support and service, we're acutely aware of the role we play in securing the best outcomes for our lifetime mortgage customers and we've appointed a Consumer Duty Champion at board level.

Product and services

  • We regularly review our products to ensure they are in line with changing customer needs. View our target market and product fair value statement.
  • We research the segmentation of our customer demographics for better understanding.
  • Our new and evolving account management platform enables customers to self-manage their plans.

Consumer understanding and support

  • We provide a 12-week programme to all our customer-facing staff including Dementia-Friends training.
  • Gap analysis, customer surveys and focus groups on our customer product journey helps us to understand any extra support we need to provide.
  • Our full suite of customer literature gives a balanced view on lifetime mortgages and covers all eventualities that our customers may face, in accordance with the Equity Release Council's standards.

Price and value

  • Our breadth of lifetime mortgages provides value to our customers and our regular pricing reviews ensure they remain fit for purpose.
  • We are conducting a “Value for Money Report” for each of our products, which will soon be available for advisers.

What our CEO says

The FCA's Consumer Duty has set higher and clearer standards of consumer protection. We're committed to delivering the best outcomes for all our customers, whether supporting advisers directly or helping our customers achieve their financial goals.

Paul Carter, CEO

Consumer duty resources

We've collated a variety of informative webinars in partnership with later-life sourcing experts, Advise Wise, and specialist speakers to help equity release advisers stay informed. Login to our portal to watch them, or register with us to gain exclusive access.

Hosted by John Lonen (Deloitte), Lyndsey Fallon (Deloitte) & Scott Burman (Pure)

The FCA's thematic on later life advice

Hosted by Jane Mullan (Pure), John Somerville (LIBF) & Julie Pardy (Worksmart)

Personal Accountability and Record-Keeping to Mitigate Foreseeable Harm

Hosted by Jane Mullan (Pure), Thomas Brett (Contact State) & Ryan Mansell (ERA)

Customers Come First: What Does Consumer Duty Mean for Your Service Offering?

Hosted by Jane Mullan (Pure) & Simon Chalk (Later Living Now)

Consumer Duty and Vulnerable Customers: Are You Prepared?

Hosted by Paul Carter (Pure), Ed Halliwel (Pure) & Daniel Edmondson (Advise Wise)

How Are Pure Retirement Embracing Consumer Duty

Hosted by Ed Halliwell (Pure), Scott Burman (Pure), Jane Finnerty (SOLLA), Kelly Melville-Kelly (ERC)

Countdown to Consumer Duty: Talk to the Experts

Learn more about consumer duty and lifetime mortgages

For more in-depth insight into how consumer duty impacts lifetime mortgages, you can call our team and even book in a personal visit to your offices.

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