§ Mr. PageTo ask the Chancellor of the Duchy of Lancaster if a decision has been reached on whether to give leave for the recognistion of the Life Assurance and Unit Trusts Regulatory Association.
§ Mr. MaudeIn accordance with the procedure laid down in the Financial Services Act, the Director-General of Fair Trading has reported on the rules and guidance submitted by LAUTRO to the SIB in support of its application for recognition as a self-regulating organisation. The director-general has reported that, as amended, LAUTRO's rules do not and are not likely or intended to have significant anti-competitive effects. Having had regard to the director-general's report, the Secretary of State has concluded that on the basis of the information presently available, LAUTRO's rules and guidance do not have, and are not intended or likely to have, to any significant extent, the effect of restricting, distorting or preventing competition. The Secretary of State also has had regard to European Community considerations. Her Majesty's Government and the Commission have a common objective in promoting full competition and transparency in the marketing of life assurance. In order to comply with Community law LAUTRO will be notifying shortly its rules formally to the Commission in order to seek an exemption under article 85 EEC. The Commission will examine them, having regard to Community competition law and practice and the particular circumstances of the EEC insurance market as a whole. Against this background the Secretary of State has therefore today given leave to the SIB for the recognition of LAUTRO as a self-regulating organisation.
The director-general has also made a separate report on the rules and guidance submitted by LAUTRO in support of its application for recognition as a self-regulating organisation for friendly societies. Having had regard to this report, the Secretary of State has concluded that on the basis of the information presently available LAUTRO's rules and guidance do not have, to any significant extent, the effect of restricting, distorting or preventing competition. The Secretary of State has also therefore today given consent to the SIB for the recognition of LAUTRO as a self-regulating organisation for friendly societies.