Equity Release Council GCM 3 rd December 2014 Nigel Waterson, Chairman
Welcome and thanks
Apologies
Minutes To approve the minutes of the last GCM held on 6 th October 2014
Achievements: Governance Some of The Council’s achievements are : • Updated business plan with defined strategic objectives allowing activity prioritisation • Risk register set up & monitored • ToRs for all Groups created & signed off • Documented complaints process • Documented infringement policy
Achievements: Financial • Stringent income and expenditure monitoring process • Revised renewal process • All service & insurance contracts reviewed & updated Enquiries follow-up process – new member contact • Increased membership – overall growth of membership set to • hit 24% , new joiners rose by 26% At Oct 2013 Firms 88 , Individuals 246 Now Firms 108 , Individuals 348 Additionally, 12 firms and 19 individuals currently going through the application process
Achievements: External Relations Political/Regulatory engagement Set-up 4 high- level gov’t department mtgs & presented at • ASSG (DWP) • Set-up 2 mtgs IGF/GG & GG Parliamentary Event • Engaged w PRA & FCA (SII & MCD) - ongoing • Partnerships: Age UK, TPAS, CAB • Contributed in manifesto drafting process • Attended 3 party conferences, ILC-UK on Equity Bank, Age UK commission, GG Reform Event, Age Action Alliance Industry engagement • Presented/Exhibited: FSE, PFS • Attended/Exhibited IMLA Debate, FPS, MBE, TMPE • Engaged w potential new members (eg, L&G) • Partnerships: CII, PFS
The Council in the news Between 01 Jan – 18 Nov 2014, The Council has: • Issued 21 responsive comments on pressing socio-economic issues • Issued 12 news stories to national, consumer, trade / broadcast media • Issued 41 regional news stories to local / broadcast media • Answered over 120 journalist queries for data / commentary • Given 18 radio interviews targeting national / regional audiences
Building greater profile So far in 2014, The Council has achieved 636 pieces of coverage with an estimated value of over £3.2m and circulation of 113.6m National media now accounts for 18% of all coverage for The Council, compared with 16% for the same period in 2013
Coverage highlights
Coverage breakdown 4% (29 3% (18 pieces) pieces) 18% (113 pieces) Jan 1st 2014 – Nov Broadcast 18th 2014 Trade Regional National Consumer 28% (175 47% (301 pieces) pieces) 5% 10% 16% Jan 1st 2013 – Nov Broadcast Trade 18th 2013 Regional National Consumer 14% 56%
Key radio appearances The Council has made a number of radio appearances to discuss ER, incl.: LBC Radio to discuss the Council’s research on new year financial planning • BBC Radio 2 Drive Time analysing 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 ER BBC Radio 4 You and Yours to discuss the Council’s Q1 2014 results • • Kingdom FM on latest research into attitudes towards home improvements in later life • BBC Radio 4 Today Programme, BBC Radio 5 Drive Time and BBC Radio 5 Moneybox to discuss the record breaking Q3 2014 results Total estimated audience Jan – Nov: 33m+
On the PR agenda • The next consumer campaign will examine debt patterns over the last year along with over-55s attitudes towards inheritance and providing family members with financial support • A rolling schedule of industry comments and 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 • Engagement with gov’t departments, GG provider orgs
Pensions Reforms & Guidance Guarantee The Council organised GG parliamentary briefing (Oct) • Hosted by MP H. Wheeler & chaired by fellow MP M. Hoban, was well attended, with CAB analysing delivery plans • Panel incl.: Michelle Cracknell, CE of TPAS, Caroline Rookes, CE of MAS & Jane Vass, Head of Policy at Age UK • The Council is following up with delivery partners mtgs
Pensions Reforms & Guidance Guarantee HMT: the f2f element will be provided by CAB & tel. advice service by TPAS - MAS & HMT will develop the web element of the guidance Pensions Schemes Bill is now at Report Stage The Council submitted evidence to Public Bill Cttee, urging the Gov’t to ensure that the guidance is holistic and distinct from advice The Council ensured amendment tabled requiring those delivering guidance to ask about all potential wealth sources including housing wealth
EU Mortgage Credit Directive The Council met w FCA and discussed the definition being too narrow and the risks associated with consumer protection and with reputational risks for the industry Regulatory group is picking up the discussion along with the consultation response due on 29 th Dec 2014 Lorna O’Brien from the FCA is here today to tell you more on the Directive and answer your questions
Solvency II EIOPA published response consultation on Implementation Technical Standards (ITS) for SII in Nov 2014, incl. specific procedures & criteria for the MA approval - stated that ITS is only for the approval process The draft ITS will be submitted to the EC for endorsement within next 3 months The Council met with the PRA and will continue its engagement on a national & international level
Looking forward to 2015: Members/PR The Council’s members • New website infrastructure/content Content and journey for both consumer and members • Member proposition incl: Developing affiliated benefits/ partner discounts Initiating tech bulletins Development of workshops External • Comms portfolios/updated literature (member & consumer) & 3 rd Market Report Market growth workshop redefined – mktg strategies implemented • • Consumer engagement (link w SAGA – countrywide programme) • Further membership expansion
Looking forward to 2015 - PA • Continued engagement on MCD, SII • Industry debate launch Engaging with new gov’t & new MPs • • Further development of relationships for pension reforms TPAS, CAB
AGM 2015 1. Directors due for re-election Craig Colton – Aviva Helen Davies – Partnership Steve Kyle – Just Retirement Vanessa Owen – LV= 2. Next Steps Deadline date Action 20-01-2015 Board members to notify intent to resign 03-02-2015 Notice of director vacancies and AGM – with nomination papers 06-03-2015 Closing date for nominations 20-03-2015 Ballot papers issued by – with notice of nominations and reminder of AGM 10-04-2015 Closing date for Ballot papers 23-04-2015 AGM / venue tbc
Questions?
Standards Board Update Chris Pond 3 rd December 2014
Recent topics • Amendments to Rules & Guidance • Combined Statement of Principles • FOS complaints data and recent press article
Amendments to the Rules and Guidance • The Rules require customers to receive independent legal advice before completion of the initial contract • This doesn’t include situations where customers may seek to withdraw additional equity from their property (other than planned drawdowns, envisaged and advised on as part of the initial contract) • Further legal advice may be advisable – and have added a list of factors which should be taken into account
Amendments to the Rules and Guidance *The words “and pension income” have been added to the first point of the Adviser’s Checklist so that it now reads: “Have you fully discussed with the customer alternatives to equity release including trading down, grants, use of savings and pension income, financial assistance from any family members and so on …”
Revised Statement of Principles • The existing Code of Conduct by SHIP and therefore written for providers • Along came the Statement of Principles • On review there is no real need for 2 docs • The new, combined document is designed to be “consumer - facing” – and sets out what consumers can expect from Council members
Revised Statement of Principles *Copies are available today *Members are asked to amend their webpages and printed material asap – preferably by end of Q1 2015 – to refer to the new Statement
FOS data & recent press coverage • Latest figures from FOS indicated that the number of mortgage-related complaints had increased by just under 8% since the previous quarter • A Daily Telegraph article implied that ER complaints had also increased • FOS does not collate ER complaints figures separately, so there was no evidence to support the article • FOS has told us that there has been ‘nothing specific’ in relation to ER
Questions?
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