The Guernsey Financial Services Commission has unveiled a new regulatory framework for equity release products, laying the groundwork for a market that will open from 1 January 2026.
The long-anticipated rules follow a public consultation that concluded in February and coincide with legislative changes to the Lending, Credit and Finance (Bailiwick of Guernsey) Law 2022.
They aim to introduce robust consumer protections while supporting market growth by making Guernsey an attractive jurisdiction for regulated equity release providers.
The Commission’s framework closely mirrors the established model in the UK, incorporating five product standards championed by the Equity Release Council. These include fixed or capped interest rates for the duration of the loan, the right for customers to remain in their homes for life or until they move permanently into care, and the ability to transfer a loan to a new home if lending criteria are met.
The regime also mandates a no negative equity guarantee and ensures customers can make voluntary repayments without penalty.
Equity release firms already authorised by the Financial Conduct Authority will be able to enter the Bailiwick’s market from the beginning of 2026 under equivalence arrangements.
Dr Jeremy Quick, director of the banking and insurance division at the Commission, said: “The equity release framework, which will come into effect from January 2026, is a crucial first step towards these products becoming available locally.
“We are confident that we have created a framework that is attractive to new market entrants. Clearly, much will depend on consumer demand and equity release providers’ appetite to enter the market here.
“The consumer protections we’ve introduced within the regulatory framework will mean that when the time comes, homeowners can enter into these arrangements with confidence.”
The Equity Release Council played an advisory role during the development of the new rules.
Kelly Melville-Kelly, the Council’s director of risk, policy and compliance, said: “We are delighted to have been able to support the Commission as it develops the rules and guidance that regulate equity release in the Bailiwick of Guernsey.
“The Council’s product standards provide people across the UK with the confidence to explore their choices when it comes to accessing housing equity and the fact they have served to inform the Commission’s approach highlights their value in supporting market growth.”
