§ Ms LawrenceTo ask the Chancellor of the Exchequer if he will make a statement on progress in the review of personal pensions mis-selling. [66318]
§ Ms HewittSignificant progress has been achieved in the priority review since May 1997. The major firms monitored by the Treasury have advanced from 15 per cent. to 94 per cent. of priority case reviews completed since the Government took office.
Of the 21 firms whose results are set out only one has resolved less than 75 per cent. of its cases. Seventeen have now resolved over 90 per cent. of their cases.
The time limit for completion of the priority review, set by the Personal Investment Authority (PIA), has now expired for the last 19 firms. As of 31 December all firms should have completed the priority review. Consistent with the treatment of the twenty firms already removed from the Treasury's monthly list the Government will look to the PIA for its assessment of whether the remainder have in fact met their targets. Those that have will be removed from the list next month.
Firms must now concentrate their efforts onto phase 2 of the review. It is important that the lessons of the priority review are properly learnt. The Government and the regulators will no longer tolerate delay, and expect all firms to adhere to the regulators' timetable.
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§ Mr. LoveTo ask the Chancellor of the Exchequer what arrangements are in place to ensure that phase 2 of the personal pensions mis-selling review will complete its outstanding cases within the timescales set out in the review; and if he will make a statement. [65062]
§ Ms HewittThe Financial Services Authority's guidance for phase 2 will include appropriate timescales for completion of the review. FSA will monitor the performance of firms to see that this guidance is adhered to. The regulators have made clear that disciplinary action will continue to be taken against firms that do not conduct their reviews with a sufficient degree of despatch.