Shares in Just Group were up 13.7% in mid-afternoon trade.
Shares in the retirement products firm increased after the Prudential Regulation Authority (PRA) delayed the new rules that will govern equity release mortgages.
The implementation date of the new set of rules will be delayed by at least a year.
The PRA said: “Based on feedback to the consultation, the PRA has decided that the implementation date will not be before 31 December 2019.”
“The PRA is making this announcement now in order to clarify the position for insurers planning their year-end 2018 processes. The PRA is currently giving careful consideration to the consultation responses and the impact, if any, of the updated implementation date to the proposed phase-in period. The PRA will publish final policy and supervisory statements in due course,” it added.
RBC Capital Markets analysts said in a note to clients: “Under the initial timescales, insurers would have had around one month to decide how to react and implement these actions for 31 December 2018 year-end accounting period.”
“We view this as a very accelerated time scale which would not give sufficient time for insurers to fully explore their options. Therefore, an extension to 31 December 2019 is extremely positive, and will result in a more managed transition, which we expect will decrease the potential impact of the change.”
Shares in Just Group (LON: JUST) are trading +12.17% at 83,40 (1553GMT).