§ Mr. HammondTo ask the Chancellor of the Exchequer what plans he has to initiate a review into the regulatory arrangements at Lloyd's of London in accordance with the terms of the recommendations of the Fourth Report of the Treasury Committee of Session 1995–96 (HC 224). [31902]
§ Mrs. Liddell[holding answer 27 February 1998]: On 21 January 1998, Official Report, columns 532–33, I announced proposals for the Financial Services Authority (FSA) to take statutory responsibility for the regulation of Lloyd's as part of the Government's wider reforms of financial services regulation. Our proposals would provide the FSA with extensive supervisory powers and powers of intervention in relation to Lloyd's. I do not therefore intend to initiate a review of the kind recommended by the Committee.
§ Mr. CousinsTo ask the Chancellor of the Exchequer, pursuant to the answer to the hon. Member for Preseli Pembrokeshire (Ms Lawrence), of 21 January 1998,Official Report, columns 532–33, on Lloyd's, if he will list the powers in the Insurance Companies Act 1982 which he will use to extend the supervision of the FSA to Lloyd's; and whether (i) these powers and (ii) the proposed reserve power to directly authorise or supervise Lloyd's members will require changes to the Lloyd's Act 1982. [31570]
§ Mrs. LiddellThe Government propose to introduce new legislation which will give new powers to the Financial Services Authority for the effective regulation of financial services providers, including banks, building societies, investment businesses and insurers. Powers under the existing financial services legislation, including the Insurance Companies Act 1982, would then be repealed. It is not envisaged that the regulatory arrangements which I have proposed for Lloyd's would require amendment to the Lloyd's Acts 1871–1982.