HC Deb 04 May 1999 vol 330 cc342-3W
Mr. Hawkins

To ask the Chancellor of the Exchequer what discussions he has had with the Financial Services Authority and the Personal Investment Authority to ensure that policy-holders surrendering endowment policies are informed of the existence of the traded endowment market. [83100]

Ms Hewitt

None. However, the Treasury keeps under review the case for extending the scope of the Financial Services Act 1986 to include all dealings in traded endowment policies. I am not yet persuaded that the benefits of doing so would outweigh the costs.

Mr. Hawkins

To ask the Chancellor of the Exchequer what estimate he has made of(a) the number of consumers who have lost money as a result of surrendering their endowment policies rather than trading them on the open market in each of the last 10 years and (b) how much money has been lost by consumers surrendering their endowment policies rather than trading them on the open market in each of the last 10 years; and if he will make a statement. [83099]

Ms Hewitt

No such estimates have been made. The traded endowment market is small. Prices offered for second hand endowment policies are tending to converge with surrender values.

Mr. Hawkins

To ask the Chancellor of the Exchequer what plans he has to accept the recommendations contained in the Office of Fair Trading report, "Vulnerable Consumers and Financial Services", in respect of traded endowment policies. [83101]

Ms Hewitt

None of the recommendations relates to traded endowment policies.

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