July 11, 2019

Media and Public Affairs Update January 2019

POLICY AND COMMUNICATIONS UPDATE

External communications

Media profile

Last year saw the equity release market and the Council move further into mainstream financial services and later life lending discussions, which was reflected in the quality and quantity of the coverage secured. The Council’s coverage exceeded 1,000 articles in a single year (a record) representing a 50% uplift compared with 2017. A standout moment came in May when the Daily Telegraph announced that “equity release has become mainstream”.

Out of the 1,131 articles secured, 235 were in national titles, a 61% increase year-on-year. Coverage was largely on-message, highlighting the important role equity release and property wealth can play in a holistic or rounded approach to later life planning.

The balanced and positive coverage has been helped by continued relationship building with national and key trade journalists.

 

Press office

The year was also a busy one for media enquiries with  a 150% increase on 2017.

The Council issued 12, proactive comments highlighting key messages including and value of specialist advice and role of equity release; and 36 reactive comments in response to inbound questions, which included managing responses to the BBC Radio 4 equity release programme, the launch of the Adam Smith Institute report and the Prudential Regulation Authority (PRA) consultation on Solvency II regulations.

2019 has begun in a similar vein, with increased interest and scrutiny acting . Instinctif has handled journalist queries about early repayment charges, including liaising with the members involved.

 

2019 priorities

This strong platform provides the Council with an opportunity to maintain and build momentum  and continue to grow awareness of equity release and how it can meet a broad range of consumer and societal needs. A key factor in boosting the sector’s reputation – and to position the Council and its members as key influencers in a growing market – will be adding to the existing range of content and insights published alongside the quarterly statistics and Equity Release Market Report. Further updates will be provided in due course.

Following the publication of the Q4 2018 market figures, showing a seventh consecutive year of growth, work is underway on the Spring 2019 Market Report as well as the 2019 member survey. The latter will gauge member views on a range of consumer and industry issues as well as the Council and the services it provides.

 

Call to action: case study panel

The media is always keen to include real life examples when writing personal finance features and as such, case studies are in high demand. Case studies bring the equity release story to life, creating greater appeal among readers and also providing you with positive media exposure since journalists will often include a company namecheck. If you are interested in joining our Case Study Panel and receiving requests to participate, please send your press office or marketing team contact details to[email protected]

 

Public Policy

Introduction

From January 2019, Instinctif Partners has been appointed to provide public policy advice and support to the Council in addition to its existing media advice,  providing a fully integrated communications approach.

Public policy activity will be carefully coordinated to ensure the maximum benefit for the Council and members. Ahead of the next Policy and Communications Committee meeting (13 February), Instinctif will be asking members to advise of their policy priorities for the year. Plans to support these objectives will be discussed and agreed at the PCC meeting.

For any questions, we can also be contacted via [email protected] or 020 7457 2020.

 

Regulatory updates 

The following consultations are under consideration by the Council on behalf of Members. As ever, any Member input into these is gratefully received:

FCA sector views

The Financial Conduct Authority (FCA) published its sector views report for 2019 which sets out their early thinking ahead of the next FCA business plan. The FCA acknowledged that an increasing number of ageing homeowners will seek to access equity from their properties for retirement income, to pay off existing liabilities such as interest-only mortgages, long-term care, or to support younger family members.

The Council will be attending a meeting with Andrew Bailey, CEO FCA, to discuss this output on 12 February.

 

Fair pricing in Financial Services

Alongside the FCA’s anticipated general insurance market study, the FCA published a discussion paper (DP18/9) on fair pricing in financial services. The discussion paper cites the mortgage market among possible examples of loyalty pricing’ or ‘inertia pricing’, in context of consumers sitting on SVRs after their lower introductory or fixed rates expire.

Since its publication, the Competition and Markets Authority has responded to a super-complaint raised by Citizens Advice into the alleged practice of companies penalising existing customers. The CMA concluded vulnerable people, including the elderly and those on a low income, may be more at risk of paying the loyalty penalty. But their main focus does not seem to be this market (rather insurance, energy etc).

The Council will continue to review the progress of this work stream but is not minded to respond at this stage.

 

Mortgage reporting requirements

The FCA and PRA have published a joint consultation paper with proposals for new reporting requirements for mortgage lenders and home finance administrators. More data is sought to supplement the Product Sales Data (PSD) and Mortgage Lending and Administration Return (MLAR).

The Council will discuss with PCC members whether or not to respond to this consultation.

 

Westminster and Whitehall

Members will have the opportunity to discuss and review plans for proactive engagement across Westminster and Whitehall at the next PCC meeting (13 February). These will include engagement with Select Committees, senior Parliamentarians, Departments (officials and Ministers), and influential stakeholders. If your company already engages on this level or is interested in hearing more about the Council’s plans, please do not hesitate to contact Instinctif.

 

Pensions Dashboard

The Department for Work and Pensions has conducted a brief consultation exercise on the implementation of the Pensions Dashboard. As Members will know, the Council is supportive of the scheme and argues for its swift implementation. The Council has argued, in a letter to Pensions Minister, Guy Opperman MP, that the scheme should include housing wealth so that consumers are best informed about the full range of their assets before retirement decisions are made.

 

DWP engagement

The Council has met with the special adviser to the Secretary of State for Work and Pensions (Rt Hon Amber Rudd MP) to discuss equity release. This provided an opportunity to brief on the role of equity release for those in retirement and for elderly people with debt.

The Council  also met with DWP’s Head of Defined Contributions Policy who is keen to continue to engage with the Council and its members.

 

Number 10 engagement 

The Council has recently engaged with the economic adviser to the Prime Minister. There is significant interest in the sector, with a focus on the drivers of growth: consumer need, innovation in products, the Council’s standards and guarantees creating an environment of trust for consumers. Solvency II and care were also discussed – the Council will be following up with additional information and data.

 

Treasury Select Committee (TSC)

The TSC has been taking evidence as part of its inquiry into Consumers’ Access to Financial Services, one focus of which has been the ability of the older demographic to access finance and some of their unique challenges. AgeUK gave oral evidence; the full transcript is available on the Parliament website.  The inquiry points to a growing focus on the treatment of consumers across all industries, including financial services.  We will be keeping a watching brief on this.

 

Conservative Party grassroots policy making

The Conservative Party Policy Forum has published its feedback to Downing Street on the topic of Health and Social Care in which equity release was mentioned as one aspect to be fed into the Department of Health and Social Care’s Green Paper on Social Care.

The Council will be embarking on additional proactive engagement with regulators, officials and targeted politicians. If you would like further information or to be involved, please do let us know.

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