§ Mr. ChopeTo ask the Chancellor of the Exchequer what advice was given to the Financial Services Authority about the Equitable Life Assurance Society; and when the FSA was given responsibility for the regulation of Equitable Life under the service level agreement dated 18 December 1998. [12822]
§ Ruth KellyI refer the hon. Member to the section of chapter 4 of the report of the Financial Services Authority headed "The Inheritance Period". Responsibility for the prudential regulation of the life insurance industry, including Equitable Life, passed to the FSA on I January 1999.
§ Mr. ChopeTo ask the Chancellor of the Exchequer when he approved the terms and references of the FSA review of the regulation of the Equitable Life Assurance Society. [12821]
§ Ruth KellyThe FSA review and its terms of reference were established by the board of the FSA. The terms of reference were published on 22 December 2000.
§ Mr. ChopeTo ask the Chancellor of the Exchequer if he will instruct the Personal Investment Authority ombudsman to resume investigation of complaints from policyholders of the Equitable Life Assurance Society; and if he will make a statement. [12846]
§ Ruth KellyThe service provided by the PIA ombudsman is impartial and independent and the Treasury does not have the power to instruct the PIA ombudsman.
Under the current regime for regulation of investment business, established under the Financial Services Act 1986, the PIA ombudsman provides a complaints resolution service for customers of firms authorised by the PIA, including the Equitable Life Assurance Society. From 1 December 2001, the PIA ombudsman will be replaced by the Financial Ombudsman Service. However, the independence of the ombudsman will remain unchanged.
§ Mr. ChopeTo ask the Chancellor of the Exchequer for what reasons Mr. Ronnie Baird and his team have no access to documents held by Equitable Life or its advisers in preparation of the FSA report on the review of the regulation of the Equitable Life Assurance Society. [12820]
§ Ruth KellyThe terms of reference drawn up by the FSA board asked the review team to report on the discharge of its functions by the Financial Services Authority and the Personal Investment Authority. The review team had full access to files held by HM Treasury, the Financial Services Authority and the Government Actuary's Department. The review team did not deem it appropriate or necessary to extend the review to include obtaining access to documents in the possession of Equitable Life or any of its advisers. The report will be an important source of evidence to the independent inquiry being undertaken by Lord Penrose, which will be able to look carefully into the actions of Equitable over the years.