Guernsey Financial Services Commission launches licensing regime for equity release from 1 January 2026

The Guernsey Financial Services Commission announced that a new regulatory regime for equity release will take effect on 1 January 2026 under the Lending, Credit and Finance (LCF) Law, bringing providers and related service firms into a licensing framework. The regime applies to equity release arrangements that allow older homeowners to access value in their Bailiwick residential property, covering both lifetime mortgages and home reversion plans. 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 can apply to vary their activities to include equity release via the Commission’s Applications and Authorisations Portal, while new entrants must submit a full licence application. The framework follows the Commission’s December 2024 consultation and June 2025 feedback paper, and legislative amendments by the Policy & Resources Committee to add equity release and associated definitions into Part II of the LCF Law; application and annual fees for equity release providers will be discounted by 50% for the first three years, and UK providers authorised by the Financial Conduct Authority may be eligible for equivalence where the customer is advised by a locally licensed advisor.