§ Mr.CousinsTo ask the Chancellor of the Exchequer what plans he has to investigate the regulatory performance of his Department and its predecessors in respect of insurance providers and appointed actuaries on the issue of(a) guaranteed annuity policies, (b) with profits funds and (c) policyholders' reasonable expectations in the period leading up to 1 January 1999. [145695]
§ Mr.OttawayTo ask the Chancellor of the Exchequer if he will conduct an inquiry into his Department's regulation of Equitable Life during 1997 and 1998. [146685]
§ Miss Melanie Johnson[holding answer 16 and 22 January 2001]: The Financial Services Authority is preparing a report on the events leading to the closure of Equitable Life to new business. As the FSA said on 22 December the report will set out the background and events leading up to the FSA assuming responsibility for prudential insurance regulation. The report is likely to take some months and it will be published.
§ Mr. OttawayTo ask the Chancellor of the Exchequer, pursuant to his answer of 8 January 2000,Official Report, column 462W, if he will make it his policy to provide compensation to Equitable Life policy holders who acted on the guidance issued by his Department. [145570]
§ Miss Melanie Johnson[holding answer 15 January 2001]: As I announced in the Westminster Hall Adjournment debate on 19 December 2000, Official Report, column 56WH, compensation for the customers of financial services firms is available if a firm becomes insolvent. As I also reported in that debate, the FSA said 214W when the firm closed to new business that the Equitable Life was not insolvent. In the case of insolvent insurance firms, the relevant compensation scheme is that provided for under the Policyholders Protection Act 1975. The Financial Services and Markets Act 2000, when implemented, will bring these arrangements into the single Financial Services Compensation Scheme.