On 13 September 2006, following a consultation in March 2006, HM Treasury published three statutory instruments (SIs) in relation to the regulation of home reversion and home purchase plans. A summary of responses to the Treasury's consultation as well as a final regulatory impact assessment have also been published.

The main SI amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 in order to introduce new regulated activities of entering into, administering, advising on and arranging home reversion and home purchase plans. The two other SIs make consequential changes to the money laundering rules under the Terrorism Act 2000 and the Proceeds of Crime Act 2002. Aside from an amendment to the definition of administering a home reversion plan to add the recovery of payments due from the reversion seller under the plan and the introduction of interim authorisation provisions, no further substantive changes have been made to the drafts that were consulted on.

The three SIs, which are to take effect from 6 April 2007, will be debated in Parliament in October 2006. The Financial Services Authority (FSA) will publish the results of its separate consultation on the regulation of home reversion and home purchase plans as soon as the SIs have been approved by Parliament and will begin to accept authorisation applications from 6 November 2006. For background on the FSA and HM Treasury consultations, see Legal update FSA Consultation on regulation of home reversion and home purchase plans.