Salans believes that this is a highly necessary move if the particular area of equity release is to ever rescue its 'bealeagured' reputation.
Ideally, the type of Code the firm is calling for would help better the image of the sector, alongside showing potential customers that providers are working with their best interests in mind.
“It is the actions of a number of unscrupulous providers that are harming the reputation of those that are operating fairly and in the best interests of their customers," said Caroline Havers, partner at Salans.
"In many circumstances, sale and rent-back schemes can be a good option for many borrowers, but only if they are offered a fair deal by the provider.
"This ‘fair deal’ should include a rental guarantee and an independent valuation of their home in line with market value.
In October last year, the CML, Citizens Advice Bureau and Shelter, the homeless charity, all joined forces to write to the Government urging it to consider regulation of the sector by the FSA, however there has been little movement on the issue since.
Havers concluded: “Lack of governmental communication means that the FSA is unlikely to regulate this sector in the near future. However, this does not mean that best practice cannot be achieved across the sector.
