We are committed to high ethical standards in all our dealings. We are particularly conscious of our responsibilities in our relationships with elderly people. The success of any business whose customers are a vulnerable section of the community relies heavily on maintaining and being able to demonstrate consistently high standards in all dealings.
Home & Capital’s specialist business of providing advice and arranging and managing equity release plans depends heavily on our ability to build a long-term relationship of trust with elderly homeowners. We maintain the highest standards of customer care whether for advice, arranging a plan or subsequent administration. We adopt the same high standards whether the plan is regulated or not.
No potential customer is offered one of our plans until they have received advice, either through our regulated advisory business or through a qualified independent financial intermediary. In observing the FSA’s high level principles of Treating Customers Fairly we believe the delivery of appropriate advice is critical. In the case of equity release, it is important that homeowners are advised on the options available and not pressurised to take out an equity release plan.
Home & Capital was a founder member of Safe Home Income Plans (“SHIP”), a voluntary body established by the industry in 1991 to set standards of consumer protection. We have therefore been at the forefront of developing the industry standards in this area and maintain an active role in setting standards.
Our Chief Executive, Graeme Marshall, who has represented Home & Capital on the Board of SHIP since 1999, retired from the SHIP Board during the year, to be replaced by Simon Little, himself a Director of SHIP since 2005. Nigel Hare-Scott, who is responsible for our advisory activities, is a member of the committee of the Skills Council responsible for drawing up the syllabus for the new equity release exam.
The delivery of high quality specialist advice relies heavily on the calibre of staff delivering the advice and the systems in place for monitoring this and raising standards. We have insisted that all our advisers were fully qualified ahead of the SHIP industry deadline of 6 April 2008 and significantly in advance of the FSA deadline of 6 April 2009. Consequently, all our advisers are now CEMAP and either CeER, CeLTM plus Unit 2 or CeRER qualified enabling them to advise on either home reversions or lifetime mortgages. We aim to maintain a programme of continuous education and development for our staff.
Our home reversion plans, which are now regulated, also comply with SHIP’s code of practice. Occupants of properties held under our home reversion plans are visited by our professionals who assist them with any problems associated with the maintenance of their homes and provide other advice. All products sold by the Group adhere to the SHIP voluntary code which incorporates minimum product standards and other safeguards for consumers not covered by regulation, including:
- a no negative equity guarantee;
- security of tenure for life;
- the ability to move home without financial penalty;
- clear presentation of plans; and
- a requirement that no plan may be taken out without the customer having first received independent legal advice.
We are conscious as a business of our responsibilities towards the environment. At our last Annual Meeting, resolutions were passed to make electronic reporting of our results to Shareholders the default option. This has allowed us to reduce considerably the printing of annual reports; in addition, we no longer circulate printed half year statements automatically to Shareholders. At the same time, we have invested in enhancing access to the information in our annual statements through our website in accordance with best practice. Our Annual Report this year is being printed on recycled paper.