§ Paul FlynnTo ask the Chancellor of the Exchequer (1) if he will publish a list of endowment mortgage providers, indicating(a) how many shortfalls are associated with each company and (b) the value of orphan assets held by each company; [3720]
24W
Deregistered industrial and provident societies Reason for deregistration 1997 1998 1999 2000 20011 Unclassified 6 8 43 24 7 Cancellation 1 0 0 1 1 Transfer of engagements to another society 30 49 26 24 7 Final notification of liquidation 22 68 67 32 2 Cancellation of the registration initiated by the Registry 58 133 802 110 25 Liquidator appointed 4 3 10 7 2 Instrument of Dissolution 0 1 8 16 3 Multiple cancellation of the registration initiated by the Registry 0 0 0 386 0 Winding Up 1 4 15 11 0 Request to cancel from the society 70 87 74 78 25 (2) if he will encourage the Financial Services Authority to publish an analysis of the performance of each company endowment policy using real charges to help consumers identify the degree of risk in each company. [3718]
§ Ruth KellyThe FSA does not collect performance information direct from firms, but the Association of British Insurers collects data from its members on the proportion and numbers of letters in each of the red, amber and green, categories and passes this on to the FSA. However, the FSA is subject to constraints under Section 179 of the Financial Services Act 1986 on publication of firm data, even if it owns it.
In any case, the performance of individual company endowment policies is not an indication of mis-selling. Consumers should focus on what they are being told by their endowment provider and the information sent by, and available from, the FSA, and take a view and appropriate action if they believe the policy has been mis-sold. If compensation is due to consumers, the size of orphan assets is irrelevant.
§ Paul FlynnTo ask the Chancellor of the Exchequer if he will ask the Financial Services Authority to ensure that the cost of compensation paid to those who were mis-sold endowment mortgage policies is borne by the companies' shareholders. [3719]
§ Ruth KellyThe Government's view is that, in principle, the costs of compensating victims of any endowment mis-selling should be shared and borne in the same proportion as profits arising from mis-selling would have been.