Consultation Paper on Equity Release and amendments to the LCF Rules

The Commission has today published a Consultation Paper setting out the Commission’s proposed Rules and approach to regulating equity release products.

Equity release allows homeowners to release some of the value tied up in their home. It is a financial product available to people in later life who may have limited incomes and considerable housing equity. Customers can obtain cash releases whilst continuing to live in their home, until they die or permanently move into long-term care.

The purpose of the proposed regulatory regime is to provide a framework that safeguards the interests of customers who enter into equity release arrangements; encourages providers of home finance or later life lending to offer such services in the Bailiwick; and to ensure that equity release providers can lend with certainty.

The aim is to introduce the proposed equity release regime in January 2026 via amendments to The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022.

The Consultation Paper sets out the scope of the equity release regime and the consumer protections it includes.

In issuing this consultation, the Commission is seeking feedback from a wide range of stakeholders, including consumers, product providers, legal advisers, and financial advisers. This will assist the Commission in developing its supervisory approach.

Responding to the consultation
Respondents are encouraged to submit their comments online using the Commission’s Consultation Hub , where copies of the Consultation Paper and draft Rules and Guidance can also be found. The Consultation Paper can be made available in other formats if required and for those who may  need an alternative route to respond, the Commission is happy to receive feedback on the consultation via telephone or via in-person meetings.

The Commission will be meeting with stakeholders during early 2025, and anyone who would like to discuss the consultation paper can email [email protected].

Responses to the Consultation Paper are sought by 28 February 2025.