§ Mr. CousinsTo ask the Chancellor of the Exchequer (1) if he will review the statutory basis for the role of the appointed actuary in insurance enterprises; [143942]
(2) what action the Financial Services Authority takes to monitor the distribution of orphan assets; [143941]
(3) if it is his policy that appointed actuaries in insurance enterprises can serve as chief executives. [143943]
§ Miss Melanie Johnson[holding answer 8 January 2001]: All these matters relate to the prudential regulation of insurance companies, for which the Financial Services Authority is the regulator. The Insurance Companies Act 1982 presently governs the prudential regulation of insurance companies. That Act will be repealed and replaced by the Financial Services and Markets Act 2000 when it comes into effect. Both statutory regimes require insurance companies to be soundly and prudently managed, and to take proper account of the interests of policy holders. The function and role of the appointed actuary are currently determined by the 1982 Act. It is for the FSA to assess whether those appointed to senior positions in authorised firms are fit and proper for their roles.