Key calls for immediate extension of Advice Boundary Guide Review to include later life lending to help trigger the “advice revolution”

03 April 2025

Key Later Life Finance, the UK’s leading equity release adviser, says the recent speech (published 28/03/25) by Financial Conduct Authority Chief Executive, Nikhil Rathi, is “hugely encouraging” with its focus on later life lending and property wealth.

But Will Hale, CEO Key Advice says the FCA needs to extend its Advice Boundary Guide Review to include later life lending as soon as possible to help trigger the “advice revolution” which it is consulting on for the pensions and investments market.

The speech at the JP Morgan Pensions and Savings Symposium said, “fragmented journeys – treating pensions, mortgages, savings and housing wealth as entirely separate challenges – must become a thing of the past.”

It added: “If we continue to treat pensions, mortgages, and savings as separate tracks, we will miss opportunities to help consumers get where they need to be.

However, Hale noted that the proposed Targeted Support model – arising from the Advice Boundary Guide Review and aiming to fill the gap between generic factual guidance and regulated advice – is limited to pensions and investments with later life lending not included so far.

Will Hale, CEO Key Advice, commented:

“The FCA is recognising the important role of property wealth and the later life lending market and the speech by Nikhil Rathi is hugely encouraging.

“His most important insight is that there is a need for joined up advice across the market, supporting the requirement for the consideration of all options, but so far the scope of the AGBR work is limited to pensions and investments. That needs to be extended to include consideration of property as soon as possible.

“Rathi rightly observes that for many, their home is their biggest asset and suggests that with the right product design and consumer protections in place later life lending could benefit more people, as part of an individual’s financial plan, rather than a last resort.

“The speech recognises that how and when people access their housing wealth is increasingly important. It’s welcome rhetoric and all the points mirror those that the later life lending sector has been making for some time. But more pragmatic action is required to remove advice silos, to grow people’s awareness of the options available to them and to reduce the costs involved in acquiring and serving customers so outcomes can be improved. .

“Older homeowners have significant wealth tied up in their homes which could be put to work addressing a wide range of financial issues including improving their standard of living in retirement as well as helping younger generations on to the housing ladder. This would also align well with the government's growth objectives.

“Whilst we wait for the regulator and other policy makers to make improvements to the ecosystem within which intermediaries and lenders operate, market participants must take responsibility for addressing current challenges and seizing the opportunity here and now. It is important that mainstream mortgage advisers, generalist IFAs/wealth managers and later life specialists work in close collaboration so that older homeowners are made aware of all their options and achieve consistently good outcomes.”