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07 September 2010

Bridgewater asks advisers to consider their own responsibilities in delivering increased consumer education on equity release Bridgewater Equity Release, the home reversion specialist, has today (7th September 2010) revealed the results of its second monthly survey with advisers suggesting the main responsibility for consumer education lies with the Government and product providers. The results come following Bridgewater’s first survey of equity release advisers where over half of all respondents said ‘wider consumer education on the benefits of equity release’ would be the single biggest benefit to the equity release sector over the next six months. When asked, ‘Who do you believe has the main responsibility for consumer education?’ 31% of advisers said the Government, 28% chose product providers, 16% opted for the advisory community themselves and 12% answered the trade body, SHIP. In the last survey the vast majority of advisers said they expected equity release market activity to either ‘increase’ or ‘increase a lot’ in the next six months. In the latest survey advisers were asked what percentage of that increase would be down to their own contribution. The majority of advisers (52%) said that between 26-75% of that increase in market activity would come from advisers while 19% said that an even higher percentage, 76-100%, of the growth would be down to advisers. Each month Bridgewater ask recipients of its intermediary ‘Release’ newsletter a series of questions relating to the equity release sector. The newsletter also contains advice, information and support for advisers on a variety of equity release advisory topics. Advisers wishing to receive the Bridgewater newsletter can subscribe at: http://subscribe-socratesint.bixbite.co.uk/bridgewater/ Peter Welch, Head of Sales and Distribution at Bridgewater Equity Release, commented: “These new results from the latest Bridgewater survey present an interesting picture of adviser’s own belief in their ability to increase overall equity release business levels coupled with a surprising take on whose responsibility it is to educate the consumer on equity release matters. While on the one hand, advisers seem to be saying they will be responsible for most of the increase in business over the next six months, at the same time they suggest that it is not down to them to deliver consumer education, the biggest barrier to growth in the equity release sector, and instead this should be something primarily for the Government and product providers to ensure. “Advisers are in the prime position in terms of customer interaction to impart their knowledge and experience about equity release to a wider audience and yet the general feeling is that this should not be down to them. We would suggest that greater consumer education is only going to be achieved if all equity release stakeholders take on the responsibility to deliver it, and this means advisers as well. In our last survey advisers suggested that their two greatest worries were a lack of consumer education and a lack of funding; it is still the case that advisers can do little about the latter but plenty about the former and therefore to delegate responsibility to the Government or providers is not really the answer. “As a provider we are working on consumer education but part of this work is to provide advisers with help and support to ensure they also play their part. Wider consumer education is not going to happen overnight; neither is it going to be achieved by hoping the Government will suddenly have the appetite or budget to actively promote the equity release market. We are all working towards improving Government and political interest in equity release but the fundamental work has to come from advisers, providers and SHIP. Consumer education can start at a local level and we hope that advisers take this responsibility seriously as it will be they who eventually see the benefits with an upturn in business levels.” For more information on Bridgewater Equity Release, visit: www.bridgewaterequityrelease.co.uk

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