Consumer Protection Principles
SEQUAL Code of Conduct
Each Member of SEQUAL agrees its Equity Release product(s) will adhere to, and be measured against the following Code of Conduct in dealing with Senior Australians their families and advisers.
As a minimum, Members of SEQUAL shall:
- Treat all Customers with respect and dignity
- Participate in an ASIC approved External Dispute Resolution Scheme
- Ensure that all Reverse Mortgage products carry a clear and transparent ‘no negative equity’ or ‘non-recourse’ guarantee. That is, the Customer(s) will never owe more than the net realisable value of their property, provided the terms and conditions of the loan have been met
- Strongly encourage Customer(s) to discuss the transaction with family members and to seek independent financial advice from a qualified financial adviser
- Strongly encourage Customer(s) to discuss the transaction with Centrelink to ensure they fully understand the impact, if any, on their Centrelink entitlements
- Ensure that the Customer(s) obtains independent legal advice performed by the solicitor of their choice. Prior to the completion of the transaction, the Customer(s) or their solicitor will be provided with full details of the benefits the Customer(s) will receive, and the obligations they are entering into
- Clearly and accurately identify all costs to the Customer(s) that are associated with the transaction
- Not assert or imply to a Customer(s) that the Customer(s) is obligated to purchase any other product or service offered by the Member or any other company in order to enter into an equity release product
- Provide in writing, a fair and complete package of equity release documents, covering the benefits and obligations of the product. This will include making available to the Customer(s) and their advisers a tool illustrating the potential effect of future house values, interest rates and the impact of any capitalisation of interest where applicable
- Ensure that all contracts are written to comply with Australian Consumer Law and the consumer protection provisions of any other relevant Legislation, Regulation or Code and ensure compliance, where applicable, with all Guidelines issued by SEQUAL.