Equity Release Council GCM 6 th October 2014 Nigel Waterson, Chairman
Welcome and thanks
Apologies
Minutes To approve the minutes of the last GCM held on 5 th December 2013
Membership update At Oct 2013 • Firms 88, Individuals 246 At Feb 2014 • Firms 99, individuals 318 At Apr 2014 • Firms 103, individuals 321 Now Firms 105 , Individuals 344 Additionally, 9 firms and 13 individuals currently going through the application process
PR – mainstreaming equity release In 2014 The Council has increased its focus on national and consumer media to: Maintain The Stimulate Council’s Educate Position ER as Support discussion of consumers & a mainstream reputation as a engagement with consumer attitudes tackle common financial voice of authority existing and towards equity misunderstandings product on all relevant potential members release topics This has involved: Using official data Launching quarterly and research to consumer Building and show how ER can be campaigns & the 2 nd cultivating 1 of the solutions to Market Report – relationships with relevant consumer point of reference for key journalists issues, savings & the industry retirement
The Council in the news Between 01 Jan – 25 Sep 2014, The Council has: • Issued 18 responsive comments on pressing social / economic issues • Issued 11 news stories to national, consumer, trade / broadcast media • Issued 29 regional news stories to local / broadcast media • Answered over 100 journalist queries for data / commentary • Given 15 radio interviews targeting national / regional audiences
Building greater profile So far in 2014 The Council has achieved 431 pieces of coverage with an estimated value of over £2.5m and circulation of 75.7m National media now accounts for 18% of all coverage compared with 16% for the same period in 2013
Coverage Highlights
Coverage breakdown 3% (15 pieces) 4% (18 pieces) Jan 1st 2014 – 18% (73 pieces) Sep 25th 2014 Broadcast Trade Regional 47% (203 pieces) National 28% (122 Consumer pieces) Jan 1st 2013 – 15% Sep 25th 2013 16% Trade Regional National 57% Consumer 14%
Key radio appearances The Council has made a number of radio appearances to discuss equity release, including: • LBC Radio to analyse the Council’s research on new year financial planning • BBC Radio 2 Drive Time discussing the Council’s Q4 2013 results • BBC Radio 4 Today programme highlighting the growth of equity release and Q4 2013 results BBC Radio 5 Moneybox as part of a panel answering listeners’ questions on equity • release BBC Radio 4 You and Yours to discuss the Council’s Q1 2014 results • • Kingdom FM on latest research into attitudes towards home improvements later in life Total estimated audience January – October: 25m plus
Market Report Autumn ‘14 90% of new equity release plans taken out in the first 6 months of 2014, alongside data from over 37,000 new plans up to 2013 Explored: • Customer profiles and trends including age, gender and property wealth • Product uptake including product choices and typical borrowing • Personal borrowing rates tracker for equity release versus other forms of borrowing • Regional breakdown of retirement income gained from equity release • Lump sum and drawdown consumer case studies
Market Report findings I • 18 months of retirement income through ER for over 55s • Sustained rise in the average age of ER customers • Drawdown products attract on average older people than lump sums
Market Report findings II • 5% increase in joint loans in H1 2014 • Regional breakdown of ER trends incl. how many years it adds on to retirement income
Social Media Between Jan and Sep 2014, the Council has: • sent 202 tweets promoting its latest initiatives and industry news • prompted 102 re-tweets to get the message out to a wider audience • received 525 clicks straight through to its website/ related pages increased follower base by 11% compared • to this time last year with 701 followers, including advisers, providers, journalists, publishers, think tanks and other influencers in personal and retirement finance
Website The Council’s website is consistently getting a high number of hits. Between Jan – Sep 2014 the website received: 9,867 165,554 total pageviews Member directory visitors 9,867 member directory visitors Total number of visitors 165,554 23.89% New visitor Out of the total visitors: 76.11% Returning 76.11% new visitors visitor 23.89% returning visitors
On the PR agenda for this year The Council’s quarterly consumer campaign will use bespoke • research on over-55 personal finance trends and show how equity release can be of use • A rolling schedule of industry comments, press meetings and social media activity will continue to highlight The Council’s work to a wider audience and promote the role that equity release can play in retirement
Public Affairs review From a Public Affairs perspective the Council was and is actively working for positive changes on: • Care Act • Pensions Reforms and the Guidance Guarantee • EU Mortgage Credit Directive • Solvency II
Care Act • The Care Bill was given Royal Assent & became the Care Act 2014 in May 2014 • DH launched a consultation on draft regulations & guidance for Part 1 of the Act The Council stressed that The Council’s response people should be able to The Council is focused on the issues of access independent advice monitoring for the gov. imposing charges and before taking out complex response & further assessing financial financial arrangements, ie consultations by the DH resources DPA
Pensions Reforms & the Guidance Guarantee • Freedom and Choice in Pensions & free & impartial face-to- face guidance as of April ’15 • The amount of total pension savings that can be taken as a lump sum increased from £18,000 to £30,000 The Bill brings in The Council’s called measures to for advice to be The Council highlighted The guidance implement pensions impartial, holistic & that our members already guarantee will be proposals. The abide by a CoC similar to made available personalised, Council is preparing stressing that housing FCA proposed standards - through independent written evidence & wealth should be should be a model for the 3rd parties to ensure possible included – DC pension rest of industry complete impartiality amendments for the schemes Public Bill Cttee
EU Mortgage Credit Directive MCD - adopted by EU Parl. and Commission in Feb - renders residential mortgages secured against the borrower’s home and any other lending where the purpose is to acquire/retain property rights FCA confirmed to redefine ER The Council is responding to lifetime mortgages to comply The Council is having ongoing HMT’s consultation, which is with the MCD and published a discussions with FCA on the seeking feedback on the consultation on MCD subject. We are stressing need proposed steps for the UK to Implementation and the new to avoid a parallel regulatory meet its obligation to transpose regime for ‘Equity Release Lite’ regime for 2 nd charge the MCD mortgages
Solvency II The Council submitted a response to EIOPA’s consultation on Implementing Technical Standards for SII in June – specifically on the procedures to be followed for the approval of a matching adjustment The Council will be The Council met and responding to the PRA’s Rouse recognised shared response with the possible effect & transposition of SII - seeking The Council is Jon Rouse, DG, will bring the comments on the rules to meeting with the Social Care, Local Council’s concerns to transpose the amendments PRA Government & Care HMT’s attention to the Directive introduced Partnerships by Omnibus II
Donna Bathgate Chief Operating Officer
New Team Faye Moutzouri Communications Manager Maggie Handscomb Administration and Services Manager
Events • FSE on 24 th & 25 th Sep - stand and seminar on the Changing Face of Retirement • MBE on 8 th Oct - stand and drop-in clinic for advisers with 4 of our members • Guidance Guarantee Parliamentary Briefing on 21 st Oct • Finance Professional Show on 5 th Nov - stand • PFS National Conference 2014 in Birmingham on 6 th Nov - conference session • ER Awards on 25 th Nov • GCM on 3 rd Dec in York
Questions?
Standards Board Update Jim Dredge 6 October 2014
Recent topics • Revisions to Competition Compliance Statement • Reminder to members about the requirement for face-to-face advice to be given to customers by solicitors • Recent issues arising from Standards Board meetings
Competition Compliance Statement • The existing Statement makes a number of references (to ERC programmes & co- ordinators) which are not accurate • Firms need to be reminded of their obligations under the Competition Act 1998 • Those responsible for chairing meetings will remind members at the start of business • A revised statement will be sent out to new and renewing members, and to all working groups and Committees
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