Michael Noonan (Limerick East, Fine Gael)
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Question 45: 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. [24909/06]

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. At present it is understood that there are two companies who offer this product on the Irish market. Since this activity involves selling part of a home, as opposed to taking out a loan, it currently does not fall within the remit of the Financial Regulator.

However, I recognise that there are important similarities in purpose and procedures between both Home Reversion and Equity Release types of transactions and that both products could compete for the same type of customers.

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

In view of the above considerations, my Department together with the Financial Regulator, the Department of Justice, Equality and Law Reform and the Department of the Environment, Heritage and Local Government are currently undertaking a review to examine the issues that arise in relation to the case for regulation of home reversion products and/or the providers of such products.