Australian Equity Release Industry Body “retires” citing Market Failure.
Sydney, Australia. Wednesday 28th March, 2018.
The Equity Release Industry Council (ERIC) has withdrawn from “fighting the good fight” to develop an efficient and ethical equity release market in Australia” and has ceased operations.
Although ERIC had been committed to encouraging growth in the Australian equity release market, this commitment was largely unrewarded with market participants and regulators alike showing little or no interest in developing new (and arguably better) equity release solutions for Senior Australians.
In a statement today the former Chief Executive of the peak industry body, Kevin Conlon said, “Equity Release may be one (albeit expensive) solution for so-called asset rich but cash poor retirees. However, the Equity Release market in Australia has failed to deliver any significant product improvements over recent years and the key stakeholders have shown little interest in fixing the problem”.
Conlon cites market failure saying that, “Unlike the strong UK and US markets, there are only a small cohort of Equity Release providers that remain in the Australian equity release market and due to a lack of competitive tension, poor industry leadership and limited Government/Regulator support, there are sadly only very few options for Senior Australians seeking to stay in place and access their housing wealth in order to live the life they choose for themselves”.
Although this is the end of the road for ERIC, Conlon intends to continue his work towards introducing a national education standard for mortgage brokers and financial advisers who either promote or advise on equity release strategies.