Equity Release Council appoints new committee to oversee standards

The Equity Release Council has appointed a new standards committee to develop its consumer safeguards.

The 11-strong committee will be in post for two years and is made up of experts from across the trade body’s membership.

Following a major organisation-wide governance review, the standards committee replaces the former standards board. Its composition has been expanded and reflects the organisation’s ability to bring together all disciplines involved in delivering positive customer experiences, including providers, advisers, solicitors, surveyors and tech platforms.

The Council is now recruiting an independent chair to oversee the standards committee and a new member panel, which will inform the organisation's business planning and strategic direction.

Responsibility for approving the Council’s standards remains with its board, which recently appointed two independent non-executive directors to inform its strategic plans and responsible stewardship of the standards.

Products that meet Council standards ensure a secure tenure for life; fixed or capped rates for life at the point of release; the right to move home; a ‘no negative equity’ guarantee; and the ability to make voluntary penalty-free repayments, which can reduce interest costs.

CEO Jim Boyd said: “Our standards committee will continue to evolve our safeguards to meet changing consumer needs.

“The importance of our safeguards has remained a constant for over 30 years. This commitment to industry improvement has transformed the profile and reputation of equity release with consumers, government and regulators alike. Council standards are stronger than ever following the launch of our fifth product standard last year, giving all new customers the option to pay down their loan via voluntary penalty-free partial repayments.

“Modern equity release is a trusted and socially important product that enables older people to meet daily living expenses, make aspirational purchases or support their loved ones. It should be on all homeowners’ financial checklists as they approach later life.”