Wednesday, April 29

Which? under fire for equity release comments

The Association of IFAs (AIFA) has criticised consumer watchdog Which? after it hinted its report into the quality of equity release advice given by intermediaries will be far from glowing, reports IFA online.

Chairman John Gummer MP says Which? "talks as though IFAs behave badly naturally", adding he disapproves of its suggestion equity release should be a last resort.

It follows comments made today at a debate hosted by solicitor Eversheds and trade body Safe Home Income Plans (SHIP).

Speaking at the event, Which? spokesperson Teresa Fritz said the consumer body was in the process of conducting a mystery shopper exercise on a number of equity release advisers.

Although Fritz pointed out the study is still at an early stage, she admitted early results suggest a poor level of advice, with conduct of business rules ignored.

But Gummer hit back: "Which? talks as if we in the industry are a group of people that behave badly naturally.

"I do not like its statement equity release should be a last resort. It is an option that should be considered carefully. We do not want to frighten off people for whom this is the best option."

Gummer adds while intermediaries provide a good standard of advice, they cannot force clients to follow it.

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