§ Lord Taylor of Warwick
asked Her Majesty's Government:
Whether they will introduce further regulation for the long-term care funding market. [HL5264]
§ Lord McIntosh of Haringey
The Financial Services Authority (FSA) already has responsibility for regulating the advice and selling of immediate care annuities and long-term care insurance investment bonds. These are investments used to finance long-term care.
On 1 July 2003, Parliament approved the Government's proposals to give the Financial Services Authority (FSA) responsibility for regulating mortgage business and general insurance mediation. That legislation included proposals to give the FSA responsibility for regulating the selling and marketing of long-term care insurance pure protection contracts.
It is for the FSA to decide how it plans to put these decisions into effect. In September 2003, the FSA set out draft policy proposals, rules and guidance for 97WA regulating long-term care insurance (CP 200). The aim is to put in place a proportionate and consistent regulatory regime for the sale and marketing of all long-term care products designed to meet some or all of an individual's long-term care costs. Regulation will come into force with effect from 31 October 2004.