New Regulatory Regime for Equity Release to Launch on 1 January 2026

The Guernsey Financial Services Commission (the Commission) is pleased to announce that a new regulatory regime for equity release will come into effect on 1 January 2026, following extensive consultation and legislative amendments under the Lending, Credit and Finance (LCF) Law.

Equity release enables older homeowners to access some of the value tied up in their residential property without needing to move house. It offers customers the ability to withdraw either a lump sum, drawdown or an income, using the value of their Bailiwick residential property. The regime will cover both lifetime mortgages and home reversion plans.

The Commission consulted on the proposed regime in December 2024 and published its Feedback Paper in June 2025, outlining the responses received and the final amendments to the LCF Rules. The Policy & Resources Committee subsequently amended the LCF Law to include equity release and associated definitions in Part II of the Law.

From 1 January 2026:

• Firms offering equity release products or ancillary services will require a licence under Part II of the LCF Law.
• Existing LCF licensees may apply for a variation of activities to include equity release via the Commission’s Applications and Authorisations Portal.
• New entrants can submit a full licence application via the Commission’s Applications and Authorisations Portal.

In order to encourage entrants to the market, UK equity release providers authorised by the Financial Conduct Authority may be eligible for equivalence, provided the customer is advised by a locally licensed advisor.

To further support market development, application and annual fees for equity release providers will be discounted by 50% for the first three years of the regime.

More information, including the Commission’s Consultation Papers and a red lined copy of the new Rules and Guidance, can be found on the Commission’s Equity Release webpage, here.

If you have questions about the regime or the application process, please contact the LCF team at [email protected].