§ Mr. GardinerTo ask the Chancellor of the Exchequer if he will establish a scheme to compensate policyholders of Equitable Life for losses sustained by them as a result of regulatory failure. [6977]
§ Ruth KellyWe have no plans to do so. The Government believe that the right course of action is to have an independent inquiry to ensure that the lessons are learned from what has happened. That is why we have asked Lord Penrose to examine the circumstances leading to the current situation at Equitable Life and to identify any lessons to be learned for the conduct, administration and regulation of life assurance.
§ Mr. GardinerTo ask the Chancellor of the Exchequer what discussions the FSA held with Equitable Life about their decision to cut the value of with-profits pensions by 16 per cent. [6624]
§ Ruth KellyDecisions about the value of with-profits policies are a matter for the Board of Equitable Life. I understand that the FSA and the society have regular meetings to discuss a range of regulatory issues.
§ Peter BottomleyTo ask the Chancellor of the Exchequer what estimates he has made of the amount and likelihood of public liability in the case of Equitable Life. [7410]
§ Ruth KellyNone.
§ Mr. ChopeTo ask the Chancellor of the Exchequer if the Penrose inquiry will investigate allegations of maladministration by the DTI and Treasury in relation to regulation of Equitable Life; and if he will make a statement. [7289]
§ Ruth KellyThe scope of the inquiry being conducted by Lord Penrose is a matter for him, subject to his terms of reference.
The terms of reference are
851WTo inquire into the circumstances leading to the current situation of the Equitable Life Assurance Society, taking account of relevant life market background; to identify any lessons to be learnt for the conduct, administration and regulation of life assurance business; and to give a report thereon to Treasury Ministers.
§ Mr. ChopeTo ask the Chancellor of the Exchequer what target date has been given to Lord Penrose for the completion and publication of his report. [7287]
§ Ruth KellyThe timing of the report into the findings of his inquiry is a matter for Lord Penrose. It is expected that the inquiry will report in the second half of next year.
§ Mr. ChopeTo ask the Chancellor of the Exchequer (1) when a decision will be taken on the date of publication of the report by the FSA into Equitable Life; [7290]
(2) when the Treasury will receive the report of the FSA into Equitable Life. [7285]
§ Paddy TippingTo ask the Chancellor of the Exchequer (1) when he received the Financial Services Authority's report on Equitable Life; and when he will publish this report; [7540]
(2) what issues he will take into account in deciding whether to publish the Financial Services Authority's report on Equitable Life. [7541]
§ Ruth KellyThe Treasury received the FSA Report last week and is carefully considering it. The report will be published shortly.
§ Mr. ChopeTo ask the Chancellor of the Exchequer if Lord Penrose will be working full-time in the conduct of the inquiry of which he is chairman. [7286]
§ Ruth KellyYes. Lord Penrose is working full-time on the inquiry.
§ Mr. ChopeTo ask the Chancellor of the Exchequer when Lord Penrose began work on his inquiry into Equitable Life; and what resources have been made available to him. [7288]
§ Ruth KellyLord Penrose began work immediately after the announcement on 31 August that he would carry out an inquiry.
All the resources he considers necessary are available to him.