Foreword

For very many older people their home represents the major part of their wealth. Increasingly “Home Equity Conversion” schemes are being developed and marketed to assist older people to use some of the equity in their homes to help meet costs or improve their lifestyle. “Home Equity Conversion” schemes are seen by some older people as a way of helping themselves.

Overseas experience shows that these schemes are complex both in the way they are designed and how they will impact on older people's financial positions as they age.

I want to ensure that the schemes on offer in New Zealand conform to acceptable practices and I have asked the Office for Senior Citizens to consult with relevant agencies, organisations and people with an interest in home equity schemes, to develop standards that could be included in a code of practice.

This review is not taking place in isolation from other work being undertaken to improve the regulatory environment for financial products. The Office for Senior Citizens and the Ministry of Economic Development will be working closely to ensure that the standards, and the means for enforcing them, fit comfortably within the wider financial regulatory framework.

We want to hear from you and I encourage everyone with an interest in financial issues affecting older people to make their views known.

Hon Ruth Dyson
Minister for Senior Citizens

November 2006