Mr.
Hoban: We shall have time later on for the Minister to
continue his speech. Does he not have a view on these issues? Yes, it
is for the compensation scheme and the FSA to come up with the rules,
but surely the Government have a viewthey will end up picking
up the pieces if the scheme rules are
wrong.
Ian
Pearson: When a consultation takes place, it is right for
us to listen to what the consultees say before we come to a conclusion.
The FSA will come up with a view on these matters. Obviously, the
Government will have their own view, but it is right and proper to
listen
to what people say. This is a matter for the FSA under the powers
provided in FSMAthe Financial Services and Markets Act
2000.
The hon.
Member for Fareham also raised the issue of gross payment. Obviously,
that can facilitate faster payout and help ensure that depositors with
large mortgages always have access to cash. However, it may require
some amendments to the insolvency rules for the bank insolvency
procedure, to ensure a fair result for customers, other bank creditors
and the FSCS. We will be considering that.
The hon.
Gentleman was also concerned about consumers being left in the dark
about the Financial Services Compensation Scheme. I want to be clear
that the FSA and the FSCS are conscious of the importance of consumer
awareness. As part of that, the FSA is considering whether to back up
industry initiatives with further rule changes in the future.
It being
twenty-five minutes past Ten oclock,
the Chairman adjourned the Committee
without Question put, pursuant to the Standing
Order. Adjourned
till this day at One
oclock.
|