The Equity Release Council, the trade body for equity release providers, has published a new Consumer Duty-friendly guide to help financial advisers communicate more clearly and simply with clients about equity release.

The Council said the handbook would help advisers ensure their communications are “clear, fair and not misleading” as required by the FCA’s new Consumer Duty which requires advisers to prove their clients can understand their communications.

According to the National Literacy Trust, one in six British adults has a reading age of 11 or lower.

The guide was developed in partnership with ratings agency Fairer Finance.

The handbook is available to the Council’s members to use as a toolkit when developing new communications or updating existing ones.

It covers the importance of using simple, jargon-free language as well as ensuring that documents are structured and designed in a way that is user friendly.

Jim Boyd, CEO of the Equity Release Council, said: “This guide builds on a cast iron commitment, that was enshrined in the very first equity release industry standards more than 30 years ago, to provide customers with fair, simple and complete presentations of information.

“With more features and flexibilities available on the market than ever before, it is vital that customers understand their options, so they are empowered to make informed financial decisions. This will deliver a lasting benefit to both customers and their families. Working with Fairer Finance to produce this guide will support our members to bring modern equity release products to life for customers in ways that are accessible, understandable and easy to digest.”

The Equity Release Council has over 750 member firms and 1,900 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.