§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer what is the current status of the Treasury's guarantee of the borrowings of the investors compensation scheme. [38905]
§ Mrs. Angela KnightThe Treasury has today withdrawn the guarantee of borrowing by the investors compensation scheme of up to a maximum of £17 million. The purpose of the guarantee, which was granted on 5 July, was to enable the ICS to continue to operate normally, pending the outcome of a judicial review made by Sun Life. Because of the uncertainty created by the review, neither the personal investment authority nor the ICS considered it prudent to levy PIA's members to fund the ICS. The judicial review is now resolved, and the Personal Investment Authority has levied its members. The need for the guarantee has consequently ceased and has accordingly been withdrawn.