Mark Kelly, director of Norwich Union Personal Finance, said: "Norwich Union strongly supports regulation of the lifetime mortgage market. We have always treated equity release as a regulated product even before regulation in 2004. Regulation is crucial for the market because it increases consumers' confidence, and it is something we have lobbied hard for.
"We support the FSA's drive for high standards in the lifetime mortgage market and confirm that the areas of concern, contained in the FSA report, are key areas of compliance focus for Norwich Union.
"Norwich Union is a major brand and is committed to the lifetime mortgage market. We are therefore extremely concerned about the damaging effect this report will have on consumer confidence. It is essential as an industry that we continue to provide products where there is a real need and the way to achieve this is through reputable trustworthy companies who strive to deliver the highest possible standards and controls.
"The report does not reflect the strong controls and processes Norwich Union has in place to give us assurances over the advice we give to customers. We are also concerned that the very small sample, contained in the FSA report, may not be reflective of the lifetime mortgage sector as a whole and is not a reflection of Norwich Union.
"Norwich Union will continue to review its processes and controls to ensure that high standards are maintained."
