Disclosures of interest

Payment Protection Insurance (PPI)

Members’ interests:

Peter Freeman, Chairman of the CC, wishes to appoint Richard Farrant, John Cubbin and Christopher Bright, members of the CC, to the group conducting this inquiry. This letter discloses matters in respect of those members.

Richard Farrant was Chief Operating Officer and Managing Director of the Financial Services Authority (1997-9). He helped establish and was Chairman of the Banking Code Standards Board from 1999 to 2006. Richard Farrant stood down from the PPI Group on 11 July 2009.

John Cubbin has given one day of technical advice to the FSA's research department on estimating the efficiency of consumers' mortgage decisions.

Christopher Bright was a partner of Shearman & Sterling LLP until February 2006 and he continues to do some consulting for Sherman & Sterling. Shearman & Sterling may advise some companies that are credit providers in the sector, although not in relation to consumer credit products or PPI. Christopher Bright has not advised any such clients as a partner at the firm or subsequently. Christopher Bright resigned from the CC on 5 September 2009.

Malcolm Nicholson was appointed to the PPI group on 17 November 2009. As a former partner at Slaughter and May, Mr Nicholson acted for Ellerman Investments at the time it bought the GUS home shopping business, in 2003, and again when it bought the Empire mail order business in 2007/8. In neither case, did retail PPI have any role to play in the analysis of the transaction.

So far as Mr Nicholson is aware, Slaughter and May has not advised Ellerman Investments in relation to SDGFS and the PPI inquiry, and Mr Nicholson has no on-going professional connection with either Slaughter and May or Ellerman Investments.

The members mentioned above and the CC do not believe that these matters will prejudice the ability of the Group to discharge its functions in an independent and impartial manner.

Staff interests:

Claire Short the legal director working on the Payment Protection Insurance market investigation has less than £500 in shares in HBOS and Standard Life. Claire Short is no longer employed at the CC.

Kate Poter, an economic advisor on the PPI inquiry, has less than £5,000 shares in Northern Rock. Kate Poter is no longer working on the PPI inquiry.

Morven Hadden, the legal director on the PPI inquiry, was a lawyer in private practice from March 1996 until July 2007 and has in the past provided legal advice to companies active in the financial services industry, in particular, Barclays and Axa. Ms Hadden has not advised any of these companies on issues relating to PPI.

Marjorie Davies, a member of staff working on the PPI inquiry, has less than 1350 shares in Lloyds Banking Group.

The CC does not believe that the matters disclosed above in relation to the staff affect their ability to act impartially or independently in advising the Group.