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An investigation into the quality of free equity release advice available through some intermediaries - including IFAs - has uncovered examples of what it deemed poor practice.
A mystery-shopping investigation by Which?, which consisted of 22 visits to firms, found only a single case of 'excellent' advice. Four advisers failed all its tests, although it would not identify them.
The advisers questioned by Which? comprised tied and multi-tied intermediaries as well as some independent advisers and one charity.
All the services were provided free of charge.
The benchmarks set by Which? included the provision of information on status and fees, adequate fact finding on income, debt and savings, and advice given on the types of scheme on offer.
A total of 12 advisers offered an 'average' service, despite failing on a number of key benchmarks, while four were described as 'almost perfect'.
The poor practices uncovered by Which? included instances of equity release advisers not disclosing their status and fees; insufficient fact-finding and inadequate discussion of types of schemes on offer including home reversions and lifetime mortgages.
Which? also found that only nine of the 22 advisers discussed exit fees and just ten discussed alternatives such as downsizing or taking in a lodger.
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The following words should never appear in the same article ..FREE.. ADVICE .. TIED...MULTITIED. But then again, has WHICH conducted any research into how many of the persons so advised would have sought advice had there been an up-front Fee, sufficient to enable a fully compliant report to be produced? No, they have not. I suggest that there could be significantly greater consumer detriment if individuals are put off taking advice at all. Every client begins with a summary 'free' discussion. By its very nature such a discussion cannot constitute advice nor can it be complete and detailed. To suggestthat a first meeting on such a complex issue constitutes the full process is highly disingenuous and typical of the shoddy commentary to be expected form this rag.
Posted by: Grosvenor
That's nothing
I tried to subscribe for WHICH magazine recently for free. The response was shocking, the guy I spoke to asked me how on earth I thought they could afford to do all the research, employ staff and publish the magazine if subscribers didn't pay for it. i thought this was an outrageous attitude
Posted by: Duncan Carter
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For heaven's sake!
Yet again Which? shows its stupidity. Something for nothing is exactly what it is worth. Why do they expect differently?
Posted by: Harry Katz