HISTORIC PRESS RELEASE : Home reversion plans to be regulated [May 2004]

The press release issued by HM Treasury on 10 May 2004.

HM Treasury today announced that home reversion plans will be regulated by the Financial Services Authority (FSA). The decision is the result of a full public consultation.

Announcing the decision Ruth Kelly, Financial Secretary, said:

“Buying a home reversion policy is a huge financial decision involving the most important, and sometimes only significant, asset of elderly people. It can have significant implications for tax, benefits, inheritance and long-term financial planning. Regulation will help people to make informed choices, offer valuable consumer protection and ensure that there is a level playing field in the equity release market.

“Legislation to regulate home reversion plans will be brought forward as soon as parliamentary time allows.”

HM Treasury will shortly consult on the definition of home reversion plans for the forthcoming legislation. When the scope of regulation has been defined the FSA will consult on the details of the regulatory regime.