§ Mr. Stephen O'BrienTo ask the Chancellor of the Exchequer (1) what resources the Treasury has allocated to address the question of regulating reversionary equity release products, with particular reference to(a) taking the advice of Counsel and (b) engaging parliamentary draftsmen; [106523]
(2) what steps the Government is taking in consulting on regulating reversionary equity release products; and whether it intends that the introduction of such regulation will coincide with the regulation of mortgage-based schemes; [106522]
(3) what assessment the Government has made, in the absence of regulation of reversionary equity release products, of the risk to consumer confidence in the overall equity release market; [106524]
(4) what assessment the Government has made of the extent to which partial regulation of equity release products is acting as a barrier to entry. [106525]
§ Ruth KellyAs announced in the Government's Green Paper on Pensions, the Government is looking at the options to create a level playing field for the regulation of equity release and home reversion plans to protect consumers and make the market work better. No decisions have yet been taken and consequently no resources allocated for taking the advice of Counsel or engaging parliamentary draftsmen. I will make an announcement in due course.
§ Mr. Stephen O'BrienTo ask the Chancellor of the Exchequer what steps the Government is taking to educate the population in the use of equity release products. [106526]
§ Ruth KellyConsumer education in relation to financial services is a matter for the Financial Services Authority.
§ Mr. Stephen O'BrienTo ask the Chancellor of the Exchequer what steps the Government is taking to enable providers of equity release products adequately to hedge their exposures. [106527]
§ Ruth KellyThose firms that are authorised by the Financial Services Authority (FSA) will be regulated prudentially, that is as to their solvency and risk562W management. Within FSA rules, the financial management of equity release providers is a matter for the managers of such firms.