§ Lord Gainford asked Her Majesty's Government:
§ Which organisations will be able to offer personal pension saving schemes.
§ The Parliamentary Under-Secretary of State, Department of Health and Social Security (Lord Skelmersdale)My Lords, the new type of personal pension scheme which can be used as an alternative to the state earnings-related pension scheme becomes available from 1st July. Banks, building societies, friendly societies, insurance companies, and unit trust companies will be able to provide personal pensions.
§ Lord GainfordMy Lords, I thank my noble friend for that Answer. Is he satisfied that the DHSS is proposing satisfactory advertising that provides a fair comparison between the institutions regulated by its rules and those that are regulated by other financial regulations?
§ Lord SkelmersdaleMy Lords, we are consulting at the moment on just that subject. Our concern about the advertising of any type of personal pension scheme has always centred on ensuring that projections of future benefits are not misleading. When the Social Security Act 1986 was going through Parliament the Government made it clear that that was the principal intended use of the power being taken to control pension scheme advertisements. Under the Financial Services Act the advertising rules are designed to embrace a much wider range of products than personal pensions and, as a result, are more wide-ranging. However, I should stress that the present proposals are consultative.
§ Baroness Turner of CamdenMy Lords, is the Minister satisfied that the range of consumer protection available is sufficient to protect those who may be tempted to take PPPs and leave occupational pension schemes? Secondly, is enough advice available for people who are confronted with the labyrinth which now exists in the pensions world in respect of personal private pensions?
§ Lord SkelmersdaleMy Lords, as far as concerns general advice, Department of Health and Social Security offices have copies of a booklet entitled New Pensions Choices. That is in broad terms and is not intended to direct applicants to any particular type—or even firm —of insurance. We recognise that the proposed controls are not as extensive as those to which unit-based trust schemes will be subject under the Financial Services Act. We believe that our 1132 approach reflects the different characteristics of the deposit-based personal pension. I repeat that the proposals are consultative and we shall reflect carefully on the comments received before taking further action.