Is Equity Release Regulated in the UK?

FCA regulation — what it means in practice

The Financial Conduct Authority is the UK's statutory regulator for financial services, including equity release. Any firm or individual that gives advice on equity release — specifically lifetime mortgages and home reversion plans — must be authorised by the FCA to do so. Providing equity release advice without FCA authorisation is illegal.

FCA regulation means that advisers are required to follow the Conduct of Business Sourcebook (COBS) rules, which include obligations to:

• Act in the client's best interests
• Provide advice that is suitable for the individual's circumstances
• Disclose all relevant costs and risks clearly
• Give whole-of-market advice, or disclose clearly if advice is restricted to a panel of lenders
• Produce a written suitability report explaining the recommendation

The FCA also has the power to investigate complaints, fine firms, and withdraw authorisation from those who do not meet its standards.

The Equity Release Council — standards above the FCA minimum

The Equity Release Council (ERC) is the industry trade body for the UK equity release sector. Membership is voluntary, but the ERC's consumer protection standards go beyond what the FCA requires as a minimum.

Key standards required of ERC-member lenders include:

• The no-negative-equity guarantee — you can never owe more than your home is worth
• The right to remain in your home for life, or until you move into long-term care
• Independent legal advice must be taken before completion
• Plans must be portable to a new property, subject to the lender's criteria
• Transparent product information and a clear illustration of how the loan will grow

Choosing an ERC-approved product gives you these additional protections on top of FCA regulation. For a full explanation of what ERC membership means, see: What is the Equity Release Council?

The Financial Ombudsman Service

If you receive equity release advice and believe it was unsuitable, you have recourse to the Financial Ombudsman Service (FOS). The FOS is an independent body that investigates complaints against regulated financial firms at no cost to the consumer.

If the FOS upholds a complaint, it can require the firm to pay compensation. The maximum award the FOS can make is £430,000 (as of 2026), which is relevant given the significant sums involved in equity release transactions.

The existence of the FOS is an important consumer protection. It means that poor advice — whether through unsuitable product selection, failure to disclose risks, or inadequate assessment of your circumstances — can be challenged and remedied through an independent process.

What to check before taking advice

Before engaging an equity release adviser, two checks are worth making:

• FCA Register — visit register.fca.org.uk to confirm the firm and individual adviser hold the correct permissions. The relevant permission for equity release advice is typically listed as "advising on home reversion plans" and/or "advising on regulated mortgage contracts" (which includes lifetime mortgages).
• ERC membership — check the Equity Release Council's website to confirm whether the adviser and any lenders they recommend are ERC members. This tells you whether the additional ERC consumer standards apply.

The FCA is also actively reviewing the later-life mortgage market through a formal market study in 2026, which is expected to result in further strengthening of consumer protections and advice standards across the sector.