Regulation of Financial Services (Land Transactions) Bill

I beg to move, That the Bill be read a Second time. I begin by apologising to the House that I have to leave after opening the debate to attend a family wedding. The Conservative party has been generous in understanding that. The Chief Secretary will remain throughout the debate, and will close it ably and effectively. [Interruption.] I am always nice about the Chief Secretary. I am delighted to bring the Bill before the House. In doing so the Government are fulfilling a commitment made in May 2004 to bring home reversion plans into statutory regulation by the Financial Services Authority. To buy a home reversion plan is a huge financial decision, involving the most important and sometimes only significant asset of elderly people. In addition, it can have significant implications for tax, benefits, inheritance and long-term financial planning, which need to be considered carefully. Regulation is facilitated by the Bill and is not designed to discourage people from purchasing such products. It will help people make informed choices, offer valuable consumer protection and ensure that there is a level playing field in the equity release market. Most of that already falls within the scope of FSA mortgage regulation. Furthermore, the provisions will ensure that those who are uncomfortable about taking out interest-bearing loans, such as Muslim consumers, can access the growing market in sharia-compliant home finance products while benefiting from the protections afforded by the FSA regulation. The Bill has been introduced to meet the needs of consumers, but also at the behest of the industry, which has welcomed the news that the Government are to legislate to level the regulatory playing field in this area.