Regulation absolutely necessary to increase consumer and adviser confidence in the equity release market.
- Regulation absolutely necessary to increase consumer and adviser confidence in the equity release market
Responding to HM Treasury’s publication of the consultation paper on secondary legislation for the regulation of home reversion and home purchase plans Daren Carter, sales and marketing director for Norwich Union Personal Finance, said: “The consultation process is a step in the right direction. We lobbied the Treasury back in 2002 on this issue and called on them to introduce full regulation of both Lifetime Mortgages and Home Reversion Plans.
"We believe that regulation will further increase consumer and adviser confidence in the equity release market but currently there’s a two tier regulatory framework in place, lifetime mortgages are regulated and home reversion plans are not.
"Until this is implemented there remains a gap in regulation in this market and we want to see it closed as quickly as possible. We will be submitting a formal response to the Treasury on the consultation paper by the 23 June 2006 deadline.”
-ends-
Press office contacts:
Lorna Wiltshire 020 7662 1013
David Gwyer 01904 452828 Out of hours 07800 699508
Cheryl Cox 01904 452791 Out of hours 07800 695275
Notes to editors
- Norwich Union is one of the UK's biggest life insurers. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS and The Royal Bank of Scotland Group. Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
- Norwich Union is the market leading equity release provider with a market share of 34% (source Safe Home Income Plans Q4 2005). Full written terms and conditions are available on request. Norwich Union is the UK's largest insurer.
- Norwich Union Equity Release Limited No 3286484. Registered at 2 Rougier Street, York, YO90 1UU. Authorised and regulated by the Financial Services Authority.