|
Each Member of SEQUAL agrees it's 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 Borrowers with
respect and dignity
- Participate in an ASIC
approved External Dispute Resolution Scheme
- Ensure that all products
carry a clear and transparent ‘no negative equity’ or ‘non-recourse’
guarantee.
That is, the Borrower(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
Borrower(s) to discuss the transaction with family members and to seek
independent financial advice from a qualified financial adviser
- Strongly encourage
Borrower(s) to discuss the transaction with Centrelink to ensure they
fully understand the impact, if any, on their Centrelink entitlements
- Ensure that the Borrower(s)
obtains independent legal advice performed by the solicitor of their
choice.
Prior to the completion of the transaction, the Borrower(s) or their
solicitor will be provided with full details of the benefits the
Borrower(s) will receive,
and the obligations they are entering into
- Clearly and accurately
identify all costs to the Borrower(s) that are associated with the
transaction
- Not assert or imply to a
Borrower(s) that the Borrower(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 Borrower(s) and their advisers a
tool illustrating the potential effect of future house values, interest
rates and the capitalisation of interest on the loan
- Ensure that all loans are
written under the Uniform Consumer Credit Code (UCCC), irrespective of the
use of proceeds from the loan
All Members will comply with the Privacy Act, Trade Practices Act any other
relevant Code or Regulation at law.
Download SEQUAL Code of Conduct (pdf 251KB)
|