HC Deb 24 November 1992 vol 214 cc618-9W
Mr. Austin Mitchell

To ask the President of the Board of Trade if he will outline the powers available to him to resolve a failure to agree between the Securities and Investments Board and the Office of Fair Trading on disclosure rules for insurance agents.

Mr. Nelson

I have been asked to reply.

The Financial Services Act 1986 confers on the Treasury specific functions in relation to competition. In particular, sections 121(2) and (3) and 122(7) mean that the Treasury may exercise certain powers if, after receiving a report from the Director General of Fair Trading under section 122(4) or (6), it considers that any rules made by the Securities and Investments Board in the exercise of functions transferred it to have, or are intended or likely to have, to any significant extent the effect of restricting, distorting or preventing competition and that that effect is greater than is necessary for the protection of investors. The powers available under section 121(3) of the Financial Services Act are (a) to make an order resuming all or some of SIB's functions; and (b) to direct the agency to take specified steps for the purpose of securing that the rules do not have the relevant effect.

Mr. Austin Mitchell

To ask the President of the Board of Trade when he expects to decide upon, and publish, rules on disclosure for insurance agents; and if he will make a statement.

Mr. Nelson

I have been asked to reply.

Rules on disclosure under the Financial Services Act 1986 are primarily a matter for the Securities and Investments Board and self-regulating organisations. The Director General of Fair Trading is currently considering the rules.

Mr. Austin Mitchell

To ask the President of the Board of Trade what steps he has taken to promote discussions between the Securities and Investment Board and the Office of Fair Trading on disclosure rules for insurance agents.

Mr. Nelson

I have been asked to reply.

Any such discussions are a matter for the bodies concerned.

Mr. Austin Mitchell

To ask the President of the Board of Trade how many sets of draft rules on disclosure for insurance agents have been submitted to him.

Mr. Nelson

I have been asked to reply.

The Securities and Investments Board and the Life Assurance and Unit Trust Regulatory Organisation published detailed new rules on disclosure and standards of advice in connection with the marketing of life assurance on 22 July. They have stated that they will not be bringing the new rules into force until after they have been considered by the Director General of Fair Trading.

Mr. Austin Mitchell

To ask the President of the Board of Trade when he expects to receive the Office of Fair Trading report on the Securities and Investment Board's proposals on disclosure rules for insurance agents.

Mr. Nelson

I have been asked to reply.

The timing of any such report is a matter for the Director General of Fair Trading.