§ Mr. FlightTo ask the Chancellor of the Exchequer what impact he forecasts the abolition of polarisation will have on long-term trends in the savings ratio. [33960]
§ Mr. Andrew SmithThe polarisation proposals are designed to ensure increased choice and competition for consumers in the tied market for packaged investment products.
§ Mr. FlightTo ask the Chancellor of the Exchequer (1) what measures he will consider using to ensure that abolishing polarisation does not lead to a strengthening of the position in the marketplace of larger tied distributors of financial products such that there are adverse consequences for competition; [33952]
(2) what measures he will consider using to ensure that the abolition of polarisation does not result in major tied distributors operating commission bias in the provision of packaged products. [33959]
§ Mr. Andrew SmithThis is an issue which is addressed in FSA Consultation Paper 121, in particular paragraphs 4.22 to 4.28, and in the proposals for enhanced disclosure in Part 5.
§ Mr. FlightTo ask the Chancellor of the Exchequer what representations he has received from consumers' representatives regarding FSA Consultation Paper 121 on the impact on the interests of consumers arising from a consolidation in the position of larger tied financial distributors as a result of the abolition of polarisation. [33955]
§ Mr. Andrew SmithNone.
§ Mr. FlightTo ask the Chancellor of the Exchequer how many IFAs are registered as operating in the UK; and what he estimates will be the number in operation five years after abolishing polarisation. [33954]
§ Mr. Andrew Smith6,018 IFA firms were individually "grandfathered" into the FSA at 1 December 2001, of which 4,692 had previously been regulated by the Personal Investment Authority and 1,416 were regulated by recognised professional bodies. In addition, there are about 6,500 appointed representative IFA businesses that are mainly members of the larger IFA networks. At the1204W same time (in the run up to N2) 32,181 registered individuals worked for firms that were registered with the PIA.
The FSA Consultation Paper 121 analyses the likely impact of these proposals on the IFA sector at paragraphs 4.19 to 4.21.
§ Mr. FlightTo ask the Chancellor of the Exchequer what role the Universal bank will play in meeting the goals set out in FSA Consultation Paper 121. [33956]
§ Mr. Andrew SmithUnder the proposals for universal banking services, the Post Office Card Account will provide an electronic payment service for paying benefits and tax credits. Investments will not be part of universal banking services, so the polarisation proposals are not relevant.