§ Mr. Hayesasked the Secretary of State for Trade and Industry if he will seek to amend the insurance companies regulations to clarify whether options traded on the stock exchange are a permitted link for life insurance contracts.
§ Mr. FletcherWhilst it is my understanding that the insurance companies regulations do not make options traded on the Stock Exchange a permitted link, interpretation of the regulations on this point has given rise to some difficulty. I therefore intend to take an early opportunity to amend the regulations so as to put beyond doubt that traded options are not permitted links. Further consideration will be given to the suitability of traded options and other assets as permitted links within the new regulatory regime proposed in the White Paper on financial services.