HC Deb 19 July 2001 vol 372 cc379-80W
Mr. Gardiner

To ask the Chancellor of the Exchequer (1) if the FSA discussed with a director of the Independent Insurance Company the sale of shares to Independent's staff as a means to raise capital finance;[4487]

(2) what plans he has to establish an (a) internal and (b) external inquiry into the role of the FSA in respect of the collapse of the Independent Insurance Company. [4486]

Ruth Kelly

Discussions between the FSA and the directors of the companies it regulates are confidential between the parties concerned.

Dr. Cable

To ask the Chancellor of the Exchequer what plans the Treasury has (1) to initiate an inquiry into the role of the FSA in regulating Independent Insurance; [5293]

(2) to initiate an inquiry into the role of the FSA in regulating Independent Insurance. [5285]

Ruth Kelly

The current priority is the Serious Fraud Office investigation. That must be got right before we determine what other reviews may be necessary.

Mr. Gardiner

To ask the Chancellor of the Exchequer (1) if the information on Independent Insurance provided to the FSA by the French Commission de Contrôle des Assurances had already been supplied to the FSA; [4482]

(2) what discussions the FSA had with the French Commission de Contrôle des Assurances regarding the activities of the Independent Insurance Group plc's subsidiaries; [4485]

(3) what matters the FSA discussed with the French Commission de Contrôle des Assurances when they visited their offices in Paris in May; [4488]

(4) what concerns the French Commission de Contrôle des Assurances has raised with the FSA regarding the Independent Insurance Group since January; [4489]

(5) what information the FSA made available to the French Commission de Contrôle des Assurances in response to French concerns about the Independent Insurance Group; [4484]

(6) when the French Commission de Contrôle des Assurances first raised with the FSA their concerns about the Independent Insurance Group; and what response the FSA made. [4483]

Dr. Cable

To ask the Chancellor of the Exchequer if, prior to Independent Insurance going into liquidation(a) his Department and (b) the FSA was informed of the large losses incurred by the company's French branch. [5284]

Ruth Kelly

The French regulator, the Commission de Contrôle des Assurances (CCA), first wrote to the FSA expressing their concerns about the French insurance subsidiary of the Independent Insurance Group on 11 January 2001. This company was a sister company of the UK-supervised insurer, representing about 5 per cent of group premium income, and was subject to French supervision. The FSA, following discussions with the UK company, and having received copies of the company's own detailed responses to the French authorities, replied to the CCA in March 2001. In that letter, the FSA noted its understanding that the group had provided additional financing to the French subsidiary. The FSA subsequently had a number of further contacts with the CCA including a visit to their offices in Paris, provided financial information about the financial position of the UK company, and kept the CCA informed of events in the period leading to the company's closure.