§ Dr. CableTo ask the Chancellor of the Exchequer what assessment he has made of the recent report of the Financial Services Agency on millennium compliance; and if he will make a statement. [79385]
§ Ms HewittAs the FSA has made clear, the primary responsibility for ensuring high levels of Year 2000 preparedness lies with the industry itself. But the FSA regards the issue as a major supervisory priority. It recently made public, on an aggregated basis, its assessment of the state of readiness in financial institutions. The UK financial services sector is generally regarded as a leader in working towards Year 2000 preparedness. Within that overall picture, though, a small number of firms appears to be less ready than others. The FSA has challenged these firms either to show that this assessment is out of date or rapidly produce a plan for remedial action. It has also made clear that—where there is no better way to protect depositors, investors or policyholders or the integrity of markets—it will take supervisory action.
The decisions on whether to take such action are the statutory responsibility of the FSA, though the Treasury will continue to liaise closely with them.