Pensions Mis-selling (Hansard, 31 October 2000)

§ Mr. Flynn
To ask the Chancellor of the Exchequer what has been the total administrative cost to date of the Pensions Mis-selling Review. [134265]

§ Miss Melanie Johnson
The estimates of administrative costs, first provided by the FSA to the Treasury Select Committee in early 1998, are £500 million for phase 1 of the review and £520 to £750 million for phase 2.

§ Mr. Love
To ask the Chancellor of the Exchequer what the sources were of the funds used by the largest six companies who mis-sold personal pensions to reinstate their pensions; and if he will make a statement. [135659]

§ Miss Melanie Johnson
The Government's policy follows that outlined in the reply by the then Economic Secretary to my hon. Friend the Member for Halton (Mr. Twigg) on 24 July 1998,Official Report, columns 750–51W.
The Government view is that, in principle, the costs of compensating victims of pensions mis-selling should be shared and borne in the same proportion as profits arising from mis-selling would have been.