THURSDAY 12 NOVEMBER 1998
Members present:
Mr Giles Radice, in the Chair
Mrs Liz Blackman
Dr Vincent Cable
Mr Jim Cousins
Mr David Kidney
|
Sir Peter Lloyd
Jacqui Smith
Sir Michael Spicer
|
The Committee deliberated.
Draft Report (The Mis-selling of Personal Pensions),
proposed by the Chairman, brought up and read.
Ordered, That the draft
Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 4 read and agreed to.
Paragraph 5 read, amended and agreed to.
Paragraphs 6 to 10 read and agreed to.
Paragraphs 11 and 12 read, amended and agreed to.
Paragraphs 13 to 15 read and agreed to.
Paragraphs 16 and 17 read, amended and agreed to.
Paragraphs 18 to 21 read and agreed to.
Paragraph 22 read, amended and agreed to.
Paragraphs 23 and 24 read and agreed to.
A paragraph—(Dr Vincent Cable)—brought
up, read the first and second time, amended and inserted (now
paragraph 25).
Paragraph 25 (now 26) read, amended and agreed to.
Paragraphs 26 to 30 (now 27 to 31) read and agreed
to.
Paragraphs 31 and 32 (now 32 and 33) read, amended
and agreed to.
Paragraph 33 to 35 (now 34 to 36) read and agreed
to.
Paragraphs 36 and 37 (now 37 and 38) read, amended
and agreed to.
Another paragraph—(Mr Jim Cousins)—brought
up, read the first and second time, and inserted (now paragraph
39).
Paragraph 38 (now 40) read, as follows:
"On 17 June Mrs Liddell put out a press release
criticising the attitude of IFAs to Phase 2 of the review as "passing
the buck" and "tarnishing those IFAs with integrity".
When we put this to the IFAA, they described the Minister's remarks
as "unfortunate" in pre-empting the consultation process,
and in the particular case of transfers felt that they were being
blamed for (and being expected to compensate for) changes in rates
of return and annuity rates which were not known at the time the
advice was given.
An Amendment made.
Question put, That the paragraph, as amended, stand
part of the Report.
The Committee divided.
| Noes, 3
Mrs Liz Blackman
Mr Jim Cousins
Jacqui Smith
|
Paragraph 39 (now 41) read, amended and agreed to.
Paragraph 40 (now 42) read and agreed to.
Paragraph 41 (now 43) read, amended and agreed to.
Paragraphs 42 to 45 disagreed to.
Other paragraphs—(Mr David Kidney)—brought
up, read a first and second time, amended and inserted (now paragraphs
44 to 48).
Another paragraph—(Mr David Kidney)—brought
up and read a first and second time, as follows:
"Insurance companies hold large amounts of other
people's money. We were concerned to learn that the regulation
of this aspect of their business is ill-designed, little known
and rarely exercised. We believe that there is scope for improvement
in the protection given to policyholders. We recommend that the
Treasury examine whether legislation or further rules are necessary
to define what is meant by policyholders' "reasonable expectations",
the extent to which surplus "orphan" assets should be
distributed, and to whom, and whether the role of the appointed
actuary of an insurance company (see paragraph 29) in safeguarding
policyholders should be strengthened."
Amendment proposed, in line 4, to leave out from
the word "legislation" to the end, and add the words
"is necessary to tighten rules about fraudulent selling and
rules of competition rather than engage in the interventionist,
financially crippling and bureaucratic regulatory procedures which
comprise the emphasis and the theme of this Report.".—(Sir
Michael Spicer.)
Question put, That the Amendment be made.
The Committee divided.
|
Noes, 5
Mrs Liz Blackman
Dr Vincent Cable
Mr Jim Cousins
Mr David Kidney
Jacqui Smith |
An Amendment made.
Paragraph, as amended, inserted (now paragraph 49).
Paragraph 46 (now 50) read, amended and agreed to.
Question put, That the Report, as amended, be the
Ninth Report of the Committee to the House.
The Committee divided.
|
Noes, 1
Sir Michael Spicer
|
Ordered, That the Chairman
do make the Report to the House.
Several papers were ordered to be appended to the
Minutes of Evidence.
Ordered, That the Appendices
to the Minutes of Evidence be reported to the House.—(The
Chairman.)
[Adjourned till Tuesday next at half-past Ten
o'clock.
