Press Release
Swift government action urged on equity release regulation
A coalition of seven key industry bodies have written to the Daily Telegraph following the announcement in the recent Queen’s Speech that home reversion equity release schemes will come under the same regulatory framework as lifetime mortgages. The letter urges the Government to introduce that legislation quickly in order that regulation can begin without delay. The text of the letter, published on Thursday 26 May 2005, is as follows:
The Editor
The Daily Telegraph
1 Canada Square
London E14 5DT
Sir
It is not often that consumer groups and industry come together to call for closer regulation, but in the case of equity release, the market will only grow if consumers are confident that it is properly supervised. The recent warning from the FSA reinforces this point.
We have campaigned together over the past year for the introduction of legislation to bring home reversion products under the same regulatory framework as other equity release schemes. We are very pleased that the Regulation of Financial Services Bill, unveiled in the Queen’s Speech, will achieve that aim. It will benefit consumers by creating a level playing field across the equity release market.
However, this is not the end of the story. The Government must act swiftly to ensure that the legislation is simple and enables the FSA to begin regulating very soon.
The main customers of home reversion schemes are elderly and potentially vulnerable people, for whom protection is particularly important. In the current climate, it must be right to make it easier and safer for consumers approaching retirement to unlock the value of their own home. We urge the Government to ensure that their proposals are implemented as soon as possible.
Stephen Haddrill, Director General, Association of British Insurers
Bob Bullivant, Chairman, Personal Finance Society
Michael Coogan, Director General, Council of Mortgage Lenders
Chris Cummings, Director, Association of Mortgage Intermediaries
Michael Lake, Director General, Help the Aged
Ed Mayo, Chief Executive, National Consumer Council
David Severn, Director General, Association of Independent Financial Advisers
Latest Press Releases
- ABI appoints Huw Evans as director of coreporate affairs
- Safeguarding the future: ABI calls on chancellor to promote saving and stability
- ABI customer impact report: progress made but challenges remain
- Portillo and Brand to headline the 2008 financial media awards
- Government personal injury reform proposals are a missed oportunity
- Floods agreement addresses public concerns
- Personal Accounts Charging Structure Must Be Fair And Sustainable Says The ABI
- Gloomy Outlook As Consumers Fail To Protect Themselves Against Economic Downturn
- Agreement on flood insurance is good news for customers
- New ABI consumer guides on HIV and insurance published
Spread your message to an audience that counts, with options available for our website, email bulletins and publications including The House Magazine.
