IFAs LAG BEHIND IN PENSIONS REVIEW

Independent Financial Advisers (IFAs) are still making poor progress in completing the first phase of the personal pensions mis-selling review, Economic Secretary Helen Liddell
said today.

The Minister was speaking on the day the latest series of figures showing the progress of 41 firms were published. The monthly figures show:

78 per cent of cases put forward for review have now been completed;
3 firms have yet to complete half their caseloads;
18 firms have completed between 50 and 75 per cent of their cases; and
20 firms have completed over 75 per cent of their cases.

Commenting on the figures Mrs Liddell said:

"I am still disappointed by the poor progress being made by many IFAs. I expect them to deal with their priority cases as a matter of utmost urgency and hope the industry will continue to pursue the Association of British Insurer's lifeboat initiative to help IFAs finance their reviews and process cases. Mis-selling damages the reputation of the entire industry. It is in everyone's interests to work together to complete the review."

The Minister also rounded on those IFAs critical of the Financial Services Authority/Personal Investment Authority proposals for phase 2 of the review. She said:

"I am aware of criticisms by a number of IFAs of the FSA/PIA proposals for phase 2 of the review. Some even deny that there is a problem while others try to pass the buck. Their poor attitude tarnishes those IFAs with integrity who are making a concerted effort to complete their case reviews."

NOTES TO EDITORS

1. The Economic Secretary published the figures in response to a Parliamentary Question from Stephen Timms MP [East Ham].

2. The Treasury publishes monthly information about how fast 41 pension companies are dealing with their cases. The figures to the end of may are attached.

3. The ABI lifeboat initiative is intended to help IFAs complete their reviews. ABI hopes product providers will offer any spare capacity they may have in their pension review to carry out case reviews for IFAs. Guidance would also be given to IFAs to assist them in processing their own reviews. Funding for the review would be made through loans provided by a limited company established by the ABI.

4. Recent fines on pension firms include:

Lincoln Independent	July 1997	£75,000
The M&E Network	Aug 1997	£100,000
DBS Financial Management	Sep 1997	£425,000
Friends Provident	Sep 1997	£450,000
Moran Webb	Oct 1997	£15,000
Albany Life	Nov 1997	£375,000
Ward Consultancy	Dec 1997	£20,000
Jacobs Insurance Brokers	Dec 1997	£10,000
Cox Hepburn	Jan 1998	£15,000
London & Manchester	Jan 1998	£525,000
Countrywide	Feb 1998	£250,000
Britannic Assurance	Mar 1998	£525,000
Sun Life of Canada	Apr 1998	£600,000
Financial Options	June 1998	£400,000

PROGRESS BY PENSIONS FIRMS IN RESOLVING CASES OF PERSONAL PENSIONS MIS-SELLING IN THE PERIOD TO THE END OF MAY 1998.

	A	B	C	D	E	F	G	H
Under 50% of cases
DBS	1,889	298	259	76	183	134	7	27
Burns Anderson	1,178	308	227	128	99	82	7	44
Financial Options	363	121	43	20	23	19	5	44
50-75% of cases resolved
Gan	11,598	1368	5,434	632	4,802	3,836	33	50
Countrywide	4,857	2,239	268	166	103	79	2	51
Lincoln National	13,475	1,774	6,941	1,114	5,827	4,856	36	57
Windsor Life	9,558	3,332	3,064	291	2,386	1,896	20	58
Abbey Life	17,446	4551	6,690	1,015	5,675	4,798	28	59
London & Manchester	8,430	1,271	4,540	537	4,003	3,603	43	64
IFA Network	333	97	120	84	36	33	10	64
Colonial	8,421	2,531	3,598	420	3,178	2,610	31	66
Friends Provident	6,964	1,049	3,948	601	3,347	2,984	43	67
Standard Life	7,052	780	4,284	999	3,285	2,932	42	67
Hill Samuel	6,114	862	3,678	653	3,025	2,663	44	68
Canada Life	5,575	340	3,937	588	3,349	2,893	52	69
Royal & Sun Alliance	16,109	3,028	9,953	1,158	8,795	7,100	44	70
NatWest	15,085	4,522	7,211	1,099	6,122	4,990	33	70
CIS	43,459	4,912	30,279	13,196	17,083	13,256	31	72
Sun Life of Canada	27,720	9,999	11,681	2,150	9,531	7,951	29	73
Berkeley Independent	173	104	22	18	4	4	2	73
Sedgwick	16,064	8,145	4,061	1,556	2,505	2,231	14	74
over 75% of cases resolved
Albany Life	2,950	640	1,974	185	1,789	1,410	48	76
Allied Dunbar	19,197	4,050	12,176	3,507	8,669	7,251	38	77
M&E Network	315	173	78	26	52	48	15	78
Equitable Life	7,540	1,856	4,378	1,629	2,749	2,459	33	79
Guardian	9,161	1,260	6,569	974	5,595	5,017	55	79
Legal & General	36,804	14,872	18,372	1,743	16,629	13,440	37	82
Britannic	19,639	5,411	12,313	3,067	9,246	7,782	40	83
Wesleyan	4,178	267	3,378	987	2,391	2,264	54	84
Lloyd's TSB	50,018	12,382	32,508	6,281	26,227	23,855	48	85
Hogg Robinson	2,178	807	1,163	399	764	651	30	85
United Assurance	13,252	1,253	11,066	2,040	9,026	8,114	61	86
Commercial Union	7,887	1,299	5,849	799	5,050	4,708	60	86
Pearl	46,814	3,887	39,356	5,641	33,715	31,080	66	87
Prudential	72,172	19,410	52,681	3,875	48,806	40,239	56	88
Royal London	12,806	1,128	11,470	1,498	9,972	8,951	70	90
Barclays	17,035	6,050	10,293	2,306	7,987	7,146	42	91
Norwich Union	7,464	2,237	4,763	740	4,023	3,824	51	91
AXA Equity and Law	4,006	764	3,035	618	2,417	2,301	57	92
Godwins	1,478	114	1,354	455	899	839	57	95
Midland	4,862	553	4,196	493	3,703	3,622	74	96

A: cases identified as requiring review
B: of A, cases where investor was informed that information gained during assessment excluded cases from review
C: number of assessments completed
D: cases where the investor has been informed that no redress is due
E: cases where redress has been offered
F: cases where redress has been accepted
G: cases where redress has been accepted as a percentage of cases for review ((F/A) x 100)
H: cases completed, including exclusions, as a percentage of cases identified for review (((B+D+F)/A) x 100)

Press Notices 1998 January to June Index