& European Pensions
Property Asset Release Group

EPPARG seeks to foster dialogue between industry, EU institutions and governments on innovative pensions and property asset release solutions.

Green Paper on Capital Markets Union overlooks huge potential of equity release in EU economy

EPPARG has responded to the European Commission’s Green Paper on Capital Markets Union, highlighting that there is no recognition of the significant role that the growth of equity release markets could have in relation to unlocking capital in the economy. EPPARG considers that promoting the growth of equity release markets should be a key priority for Europe.

EPPARG called for a ‘joined up’ approach within the European Commission, noting that a Call for Proposals was launched last year on ‘Promoting the contribution of private savings to pensions adequacy’, which will look at equity release. EPPARG urged the European Commission to ensure that its approach also takes account of equity release assets at a portfolio level as it develops its work on Capital Markets Union, which has been entirely overlooked by the Green Paper.

In terms of further measures to help increase access to funding, EPPARG called for improved recognition of the potential to improve asset and liability management of long term pension promises by including safe equity release assets of the right quality in the portfolio of banking assets. EPPARG said it would be vital to enable the funding of equity release to reach a scale where an improved level of choice and competition will provide a valuable product for consumers to supplement their pension income, especially for an ageing EU, who in the majority are home owning (asset rich) income poor or state dependent.

EPPARG also called for treatment of life time mortgages to be prioritised in future reviews of Solvency II.