§ Mr. Harry GreenwayTo ask the Secretary of State for Social Security when he expects to lay regulations following the consultation he has undertaken on the restriction of self-investment by pension funds for which provision was made in the Social Security Act 1990; and if he will make a statement.
§ Mr. NewtonThe Social Security Act 1990 provided powers enabling restrictions to be placed on the extent to526W which the resources of occupational pension schemes may be invested in the sponsoring employer, or an associate and connected employer.
Shortly after the passage of the Act, the Government commissioned independent consultants, Ernst and Young, to report on the extent of such investment and problems which might arise in restricting it.
Following their report, draft regulations to achieve such restriction were referred to the Occupational Pensions Board. After consultation with interested bodies, the board reported on the draft towards the end of July. Having considered its recommendations, together with other representations received subsequently about the need for appropriate provisions to avoid causing unnecessary difficulties for companies and pension funds in respect of existing self-investment, we intend to lay regulations to restrict self-investment early in the new year.