FCA has reviewed the promotion and advice process of firms in the later-life mortgage sector and has found a number of problems. The nature of the product means they are often sold to customers at higher risk of being in vulnerable circumstances, but FCA found that in many cases advice did not meet the standards it expected. It also reviewed promotions for later life lending products, and required almost 400 to be removed or amended. Every firm included in the review has made changes following it.
On the advice expectations, FCA has reminded firms they they must ensure they give advice which is personalised, that they challenge customer assumptions and have evidence to support the suitability of the advice they give. It found that, often, advisers were not properly considering income and expenditure and were minimising discussions of alternatives. It also found evidence that sales were incentivised potentially at the expense of quality advice and good customer outcomes and that outcomes were steered in favour of lifetime mortgage products.