Nigel Waterson, Chairman Welcome and thanks Apologies Minutes To - - PowerPoint PPT Presentation

Equity Release Council GCM 3rd December 2014

Nigel Waterson, Chairman

Welcome and thanks

Apologies

Minutes

To approve the minutes of the last GCM held on 6th October 2014

Achievements: Governance

Some of The Council’s achievements are:

• Updated business plan with defined strategic
• bjectives 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

3% (18 pieces) 47% (301 pieces) 28% (175 pieces) 18% (113 pieces) 4% (29 pieces) Broadcast Trade Regional National Consumer 5% 56% 14% 16% 10% Broadcast Trade Regional National Consumer

Jan 1st 2014 – Nov 18th 2014 Jan 1st 2013 – Nov 18th 2013

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 29th 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) & 3rd

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

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

1. Directors due for re-election Craig Colton – Aviva Helen Davies – Partnership Steve Kyle – Just Retirement Vanessa Owen – LV=

• 2. Next Steps

Questions?

Standards Board Update

Chris Pond 3rd 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

• f 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?