§ Mr. HawkinsTo ask the Chancellor of the Exchequer, pursuant to his answer of 4 May 1999,Official Report, columns 348–49, on endowment policies, what estimate he has made of the size of the traded endowment market. [85123]
§ Ms Hewitt[holding answer 24 May 1999]: The traded endowment market has an estimated value of £250 million per year. In contrast the value of with-profit bonds issued by life offices is £6 billion per year.
§ Mr. HawkinsTo ask the Chancellor of the Exchequer, pursuant to his answer of 4 May 1999,Official Report, column 348, on endowment policies, on the basis of what evidence he stated that the prices offered for second-hand endowment policies are tending to converge with surrender values. [85122]
§ Ms Hewitt[holding answer 24 May 1999]: The Financial Services Authority (FSA) monitors prices in the industry. FSA reports that some life offices have increased the surrender values of endowment policies, bringing them closer to the typical prices offered on the second hand endowment market.
§ Mr. HawkinsTo ask the Chancellor of the Exchequer, pursuant to his answer of 4 May 1999,Official Report, column 348, on endowment policies, what estimate he has made of the cost of extending the scope of the Financial Services Act 1986 to include all dealings in traded endowment policies. [85121]
§ Ms Hewitt[holding answer 24 May 1999]: The important issue is not absolute cost but the need to avoid disproportionate cost. Given the small size of the traded endowment market and the convergence between surrender values and traded endowment prices, the cost of including all dealings within the scope of the Financial Services Act 1986 is likely to exceed any benefits. The Treasury is keeping the situation under review.