Simon Coveney (Cork South Central, Fine Gael)
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Question 103: To ask the Minister for Finance his views on whether there should be regulation of home reversion products whereby older people sell part of the house to release equity. [19410/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Home reversion products primarily involve the sale of a part of the interest in a property. Unlike Equity Release Mortgages they do not constitute a financial service that would be subject to supervision by the Financial Regulator. However, I recognise that there are strong similarities in purpose and procedures between both types of transactions and that both products appear to compete for the same customers.

I am also aware that the question of regulating the providers of these products was discussed with the Joint Oireachtas Committee on Finance and the Public Service by the then Chief Executive of the Financial Regulator.

In view of the above considerations, my Department together with the Financial Regulator and the Departments of Justice, Equality and Law Reform and the Environment, Heritage and Local Government is undertaking a review to establish whether or not home reversion products and/or their providers should be regulated.