Disclosures of Interest

STORE CARD CREDIT CARD SERVICES

Members’ interests

Sir Derek Morris, the Chairman of the Commission, has appointed Christopher Clarke, a Member of the Competition Commission, to the Group conducting the store cards market inquiry. We intend to put the following disclosure on our web site:

Christopher Clarke, a former director of HSBC Investment Banking, retired as an employee of HSBC Investment Bank in 1998 and is a member of the defined benefit section of HSBC Bank (UK) Pension Scheme under which pensions are based on final pensionable salaries. Annual adjustments are made in line with inflation in accordance with the Trust Deed and Rules of the Scheme and are not tied to the income or profits of any part of HSBC.

We also intend to disclose that between them, the Members of the Group, Paul Geroski, Christopher Clarke, Cosmo Graham, Peter Hazell and Robert Turgoose, hold the following cards:

Store Cards: Harrods, John Lewis, Harvey Nichols, House of Fraser, Next, Homebase, Marks & Spencer

Debit Cards: HSBC, HSBC Private Bank, Barclays, Natwest, American Express

Credit Cards: Visa (Halifax), Visa (HSBC), Mastercard (Natwest), Mastercard (RBS), Mastercard (Marks & Spencer), Mastercard (HSBC), Barclaycard

Loyalty Cards: Tesco, Sainsburys, Midland Mainline, Nectar, Boots Advantage

The Commission takes the view that none of the above compromises the ability of the Group to discharge its functions in an independent and impartial manner.

Staff interests

We intend to make the following disclosures for the staff advising the Group:

Adam Cooper, an accountant on the Commission staff team for the inquiry, recently joined the Competition Commission from Abbey National, a credit card provider, where he worked as a strategist in Group Corporate Development.

Tom Muir, a member of the Commission staff team for the inquiry, was employed by the British Retail Consortium, some of whose member companies supply store cards, from April 1994 to April 1997 as Assistant Director then Director, dealing with economic policy, employment, education and training and transport. He left the BRC following a restructuring of its organisation. He used to draw a pension from the BRC’s staff retirement benefits scheme. This scheme has been wound up and since 6 March 2003 the payment of a benefit equivalent to the previous pension entitlement has become the responsibility of Scottish Widows: the trustees of the former BRC scheme hold no further responsibility for the benefit concerned.

David Roberts, the Chief Business Adviser and Director of Remedies Management at the Commission, was employed by J Sainsbury plc until 2000 and worked on assignments relating to Sainsbury’s Bank, a credit card provider.

Amanda Rowlatt, the Chief Economist at the Commission, has shareholdings with a value of less than £1,000 in Bradford and Bingley and Bristol and West.

Tony Gooch, a member of the Commission staff team for the inquiry, has individual saving accounts (ISA and PEP) which, at March 2004, included shares in companies involved in the sector. He also has direct shares to the value of less than £1,000 in HBOS.

Alan Shearman, the Inquiry Secretary for the inquiry, has a spouse who owns shares in HBOS of a value between £10,001 and £20,000.

Mr Shearman believes that his wife's investment will not affect his ability to act independently and impartially. The Commission is satisfied that Mr Shearman will act in an independent and impartial manner.

The staff hold the following cards:

Store Cards: Laura Ashley, Marks & Spencer, John Lewis, Austin Reed, House of Fraser, Liberty, Bentalls, Selfridges, Debenhams, Russell & Bromley, Harrods.

Debit Cards: First Direct (HSBC), Intelligent Finance (HBOS), Visa (Lloyds TSB), Barclays Connect, Co-operative Bank

Credit Cards: Visa (Tesco), Visa (Barclays), Visa (Lloyds TSB), Barclaycard, Barclaycard (Visa), Mastercard (Marks & Spencer), Mastercard (Morgan Stanley), Mastercard (HSBC), Mastercard (Barclays), Lloyds TSB, Abbey National, First Direct, Co-operative Bank, Alliance & Leicester, Egg (Prudential).

Loyalty Cards: Boots Advantage, Tesco, Nectar, Homebase, Safeway, GNC.

The Commission is satisfied that the impartiality of the inquiry will not be affected by any of the above.

Last updated: 19 May 2004