S.L. 371.21 Art. 27Advertising. Cap. 378.

(1) Without prejudice to Directive 2005/29/EC, any advertising and marketing communications concerning equity release financial products shall be fair, clear and not misleading. In particular, wording that may create false expectations for a consumer regarding the availability or the cost of an equity release financial product shall be prohibited.

(2) Without prejudice to the provisions relating to unfair commercial practices under the Consumer Affairs Act, any advertising concerning equity release financial products which indicates an interest rate or any figures relating to the cost of the credit to the consumer, shall include the standard information in accordance with this regulation.

(3) The standard information referred to in sub-regulation

(2) shall specify in a clear, concise and prominent way:

(a) the identity of the creditor;

(b) that the product advertised is an equity release financial product and that the credit agreement will be secured by a hypothec on residential immovable property or on a right related to residential immovable property;

(c) the borrowing rate, indicating whether this is fixed or variable or a combination of both:

Provided that the borrowing rate/s shall be fixed or capped for the whole duration of the equity release financial product;

(d) particulars of any charges included in the total cost of credit to the consumer;

(e) the total amount of credit;

(f) the APRC which shall be included in the advertisement at least as prominently as any interest rate;

(g) where applicable, the duration of the credit agreement;

(h) where applicable, the total amount payable by the consumer;

(i) where applicable, the amount of the instalments and the amount of each repayment of interest;

(j) a warning concerning the risk of losing the immovable property in the event of non-observance of the commitments linked to the credit agreement and, in any case, on termination of the credit agreement; and

(k) a warning that compounding of interest could materially reduce the value of the estate of the consumer.

(4) The information listed in sub-regulation (3) other than that listed in paragraphs (a) and (b) of sub-regulation (3), shall be specified by means of a representative example and shall adhere to that representative example throughout.

(5) (a) Any advertising concerning equity release financial products which includes an interest rate or any figures relating to the cost of the credit to the consumer, shall include a clear and concise statement in respect of any obligation to enter into a contract in respect of an ancillary service relating to the equity release financial product, in particular an insurance service, where:

(i) the conclusion of that service is compulsory in order to obtain the credit or to obtain it on the terms and conditions advertised; and

(ii) the cost of that service cannot be determined in advance.

(b) The obligation referred to in paragraph (a) shall be advertised in a prominent way together with the APRC.

(6) The information referred to in sub-regulations (3) and (5) shall be easily legible or clearly audible as appropriate, depending on the medium used for advertising and marketing.

(7) The competent authority may require the inclusion of a concise and proportionate warning concerning specific risks associated with credit agreements.

(8) This regulation shall be without prejudice to Directive 2005/29/EC.