§ Mr. ChaytorTo ask the Chancellor of the Exchequer (1) what criteria are applied by the investors' compensation scheme to determine if a decision on an application for compensation can be referred to a panel of non-executive directors for review; [159758]
(2) if he will conduct a review of the effectiveness of the appeals mechanisms of the investors' compensation scheme; and whether an independent appeals procedure should be established. [159757]
§ Miss Melanie JohnsonComplaints about maladministration may be addressed, successively: to the investors compensation scheme manager responsible or to a more senior member of staff; to the Chief Executive or to the board; to the scheme's Independent Investigator. The criteria for all stages in this review process are whether the claim has been handled properly and fairly. If deficiencies in the scheme's handling of a claim or in its conduct are found, these are assessed to check if the decision itself should be reviewed. The criteria for the review of a decision itself are whether the scheme's rules have been applied properly and fairly. A decision is reviewed by, successively: the manager responsible; a more senior manager; the Chief Executive. In addition, any investor may challenge the scheme's decision by judicial review.
566WThere are no plans to review the effectiveness of these arrangements. They were introduced after the financial services compensation scheme assumed operational control of the investors compensation scheme on 1 February. The new scheme reviewed the complaints arrangements and removed the stage of the panel of non-executive directors before a complaint could reach the independent investigator.