Melville-Kelly added that the FCA is looking at equity release as part of its retirement review, which was something the Equity Release Council welcomed.
But she expressed concerns that removing commission would make equity release unaffordable to many: "One benefit of the current fee structure is that people can engage with the advice process without incurring upfront costs and if there were upfront costs it might prevent customers exploring their options, particularly those who are cash poor to begin with."
Chalk added: "I do think there is commission bias between firms and product providers and maybe we need some levelling because the range from provider A to B to C can be in huge steps and if you are not a goodun then you could certainly be lured to go down the wrong path and make it fit and shoe horn."
damian.fantato@ft.com
