Ethical and sustainable advice: purchasers, equity release, BTL, bridging, other home finance and protection

ASEW Learning Outcome 4 moves from "what the rules say" to "what a good adviser does". Ethical advice is advice the client can rely on. It is affordable now, sustainable later, honest about risks and costs, and right for this client rather than convenient for the firm. Case questions test judgement:

• What should the adviser do when a client wants something unsuitable?
• When should a client be referred elsewhere?
• What extra checks does an older or vulnerable client need?

This note sets out the ethical framework, applies it to each type of advice in the syllabus, and works through an equity release case. It is the "soft skills" side of CeMAP® 3.

The ethical framework

Standard	What it requires	Source
Customer's best interests	Act honestly, fairly and professionally in the customer's best interests	MCOB 2.5A.1R
Consumer Duty	Deliver good outcomes in four areas: products and services, price and value, consumer understanding, consumer support. Avoid foreseeable harm.	PRIN 2A (in force 31 July 2023 for open products)
Vulnerable customers	Understand and respond to vulnerability linked to health, life events, resilience and capability	FG21/1
Remuneration	Adviser pay must not be contingent on sales targets or harm the ability to act in the customer's best interests	MCOB 2A.1.4R
Suitability	Recommend only what is suitable. No "least worst" product.	MCOB 4.7A.5R

Insistent clients. A client may reject the advice and want something else.

• The adviser can advise on a different suitable contract (MCOB 4.7A.4G).
• The adviser must not pretend that an unsuitable option is suitable.
• An execution-only sale is possible after rejected advice only where the MCOB 4.8A conditions are met. This never applies to the barred purposes (right to buy, main-purpose debt consolidation, shared equity) unless the client is high net worth.
• Record the advice given and the client's decision clearly.