Equity Release - Consultation on amendments to the Lending, Credit and Finance Rules and Guidance (December 2024)

Summary

This is a GFSC consultation paper seeking industry feedback on proposed amendments to the Lending, Credit and Finance Rules and Guidance, 2023, specifically to introduce a dedicated regulatory framework for equity release business in the Bailiwick of Guernsey. It sets out draft new rules covering customer protections, qualifications, advice standards and a proposed Equity Release Code of Practice, and invites comments before the rules are finalised.

• New equity release provisions: Draft new Part 7A (Part II Licences - Equity Release) covering customer age limits, excessive charging, protection and fair treatment of customers, independent legal advice, prohibition on cold calls, restrictions on use of terms, partial home reversion plans, and an Equity Release Code of Practice.
• Ancillary services rules: Draft new Part 8A covering key-facts illustrations, advised sales, and joint applications for equity release business.
• Qualification requirements: Proposes that individuals advising on or approving equity release agreements must hold both an Approved Home Finance Qualification and a new Approved Equity Release Qualification (with listed qualifying certificates set out in appendices).
• Consultation process: The Commission invites written comments from licensees and other stakeholders on the proposed rule changes before they are finalised and brought into force.

As a consultation paper, this document does not itself impose binding obligations; it describes proposed changes that would apply to Part II licensees under the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 conducting equity release business, and to individuals providing equity release advice on their behalf, once finalised.

Applies to

Part II licensees under the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022, equity release providers, individuals advising on or approving equity release agreements