Regulation of Financial Services (Land Transactions) Act 2005

This Bill will extend the FSA’s regulatory powers to cover home reversion plans and their Sharia compliant equivalents (Ijara).

The legislation is intended to help consumers make better choices, improve consumer protection and create a level playing field in the equity release market.

The FSA already covers most aspects of mortgage regulation and this Bill will fill the gaps so that consumers can be assured of proper protection.

In the eyes of the government, buying an equity release scheme is a big decision (with tax, inheritance and long-term financial planning implications) and one group particularly at risk is the elderly.

Specifically the Bill will “extend valuable consumer protection” to the elderly; provide Sharia compliant products that will benefit from FSA regulation; allow “people to make informed choices” about the products they buy; and ensure a “level regulatory playing field”.

On the morning of the Queen's speech the Financial Times led with a story on the new Bill.

 

House of Commons

First reading: May 25 2005 (HC Bill 7)

Second reading: June 23 2005

Standing Committee E: 

• 1st sitting: July 5 2005 (am)

Remaining stages: July 20 2005

House of Lords

First reading: July 21 2005 (HL Bill 19)

Second reading: October 17 2005

Committee: November 23 2005 (discharged)

Third reading: December 5 2005

Royal Assent: December 19 2005