Article date: 7 April 2006
- Regulation absolutely necessary to increase consumer andadviser confidence in the equity release market
Responding to HM Treasury’s publication of theconsultation paper on secondary legislation for the regulation ofhome reversion and home purchase plans Daren Carter, sales andmarketing 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 onthem to introduce full regulation of both Lifetime Mortgages andHome Reversion Plans.
"We believe that regulation will further increase consumer andadviser confidence in the equity release market but currentlythere’s a two tier regulatory framework in place, lifetimemortgages are regulated and home reversion plans are not.
"Until this is implemented there remains a gap in regulation inthis market and we want to see it closed as quickly as possible. Wewill be submitting a formal response to the Treasury on theconsultation paper by the 23 June 2006 deadline.”
Lorna Wiltshire 020 7662 1013
David Gwyer 01904 452828 Out of hours 07800 699508
James Evans 01904 452791 Out of hours 07800 699525
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 aleading provider of life, pensions and investment products andone of the largest Financial Adviser (FA) providers. FAs provideover 70% of the company's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including CIS and The RoyalBank of Scotland Group. Norwich Union’s news releases anda selection of images are available from Aviva's internet presscentre at www.aviva.com/media
- Norwich Union is the market leading equity release provider witha 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 2Rougier Street, York, YO90 1UU. Authorised and regulated by theFinancial Services Authority.