Reverse Mortgage Industry Body Warns Government Against Poorly Considered Regulation
Kevin Conlon, Chief Executive of SEQUAL, the peak industry body for the Equity Release market, has responded in support of the initiative announced by the Prime Minister but warns that any regulatory change needs to be carefully considered and proper regard given to the extensive industry self-regulatory initiatives that already exist. He stated that, “SEQUAL is committed to the development of an efficient and ethical Seniors Equity Release market in Australia”.
Conlon has called on Government and Regulators to acknowledge the meaningful consumer protection measures that have been delivered by SEQUAL and provides a warning should this message be ignored.
“Equity release is likely to emerge as a significant part of retirement funding and the current debate around advice and regulatory review needs to be carefully considered against that growing demand to ensure choices and legitimate strategies in retirement funding are not extinguished through unnecessary regulatory change”, warned Conlon.
The Prime Minister’s statement included a commitment to provide greater consumer protection for reverse mortgage customers. However, SEQUAL’s Chief Executive pointed out that, “The two initiatives identified by the Prime Minister today are already market practice for SEQUAL Members”. Conlon added that, “effective product disclosure is delivered through the SEQUAL Key Facts guideline and a mandatory obligation to provide a No Negative Equity Guarantee is a condition of SEQUAL Membership”.
SEQUAL’s role as the peak industry body for the Australian Senior’s Equity Release market is well established and there is wide support for market practitioners to gain industry accreditation with SEQUAL.
“It is only through mutual respect that Government, Regulators and Industry will deliver on the common goal of ensuring that consumers are well-placed to make fully informed decisions about their retirement funding”, warned Conlon.