§ Mr. HawkinsTo ask the Chancellor of the Exchequer when he plans to consult on how to regulate the selling and marketing of long-term care insurance. [9135]
§ Mrs. Angela KnightThe Government's consultation document, "A new partnership for care in old age", published on 7 May, invited comments on a proposed partnership scheme to provide extra protection from the means test for residential care to people who took out a "partnership product" to meet some of the costs of long-term care. Views were also invited on whether the selling and marketing of partnership insurance products, and long-term care insurance more generally should be regulated under the Financial Services Act 1986.
I informed the House on 24 July 1996, Official Report, column 549, that the responses to the consultation suggested a consensus in favour of regulation under the FSA, covering the marketing and selling of all long-term 302W care insurance products, but that before a decision was taken the Treasury would explore further the detailed question of how this should be achieved, and would issue a consultation document seeking the views of interested groups. The Treasury has today published a consultation document which fulfils that undertaking. Copies have been placed in the Libraries of the House.
The document explains the Treasury's detailed proposals to regulate the selling and marketing of long-term care insurance under the FSA, and includes a draft statutory instrument which would achieve this. Comments are invited from anyone interested. The end of the consultation period will be announced in the new year when the Government's policy statement on other aspects of its plans to take forward the proposals in "A new partnership for care in old age" is made.