TIME RUNS OUT FOR SEVEN MORE FIRMS

Further advances have been made towards completion of the first phase of the reviews of personal pensions mis-selling.

The time limit for completion of phase 1 of the review, set by the Personal Investment Authority (PIA), has expired for a further seven firms: Albany Life, Allied Dunbar, Canada Life, Gan, National Westminster, Royal London and Wesleyan. Consistent with the treatment of the twelve firms already removed from the Treasury's monthly list, the Economic Secretary, Patricia Hewitt said:

"These seven firms must continue to update me on their progress, but I now look to the PIA for its assessment of whether they have in fact met their targets. If they have, they will be removed from the list next month."

Of the 29 firms whose results are published today:

four have resolved less than 75 per cent of their cases. All four are networks of independent financial advisers; and
all firms have now resolved over 60 per cent of their cases.

While the Minister said she was pleased about the progress made by the pensions firms, she stressed that the completion of cases, as measured in the Treasury's published table, is not the end of the process. She said:

"With many firms close to their targets, it is now time for them to turn their attention from review to redress. I want to see the redress agreed between firms and customers delivered as a matter of priority. After the appallingly slow start to the review, firms' credibility with their customers rests on a swift resolution."

The PIA is monitoring firms' follow up action to deliver redress, and will take action against laggards where this is warranted. The Minister stressed that investors should play their part and respond in good time to any questions from firms. She also called on occupational schemes to help by making every effort to speed things along.

NOTES TO EDITORS

1. The Economic Secretary published the figures in response to a Parliamentary Question from Jackie Lawrence [Preseli Pembrokeshire].

2. The former Economic Secretary, Helen Liddell, said in November 1997 that firms which have met their targets will have their names removed from the list published by the Treasury. In July (Treasury news release 116/98) 12 companies were taken off the list. These were: AXA Equity & Law, Barclays Life, Britannic Assurance, Commercial Union, Godwins, Guardian, Lloyds TSB, Midland Bank, Norwich Union, Prudential, Royal & Sun Alliance and United Assurance.

3. The Personal Investment Authority (PIA) has levied fines related to pensions mis-selling. These include:

The M&E Network	Aug 97	£100,000
DBS Financial Management	Sep 97	£425,000
Friends Provident	Sep 97	£450,000
Albany Life	Nov 97	£375,000
London & Manchester	Jan 98	£525,000
Countrywide	Feb 98	£250,000
Britannic Assurance	Mar 98	£525,000
Sun Life of Canada	Apr 98	£600,000
Financial Options	Jun 98	£250,000
Lincoln	Jun 98	£70,000
J&H Marsh and McLennan	Jun 98	£200,000
Minet Consultancy Services	Jul 98	£250,000

4. Also, in July August and September, the PIA fined 121firms of independent financial advisers a total of £461,750.

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

50-75% of cases resolved

Countrywide	5,020	2,727	322	191	131	106	2	60
DBS	2,410	845	837	201	605	439	18	62
Financial Options	554	294	74	26	48	35	6	64
Burns Anderson	1,267	420	512	219	293	230	18	69
Over 75% of cases resolved
IFA Network	378	120	166	111	55	54	14	75
Windsor Life	9,645	3,971	4,080	320	3,760	3,147	33	77
Abbey Life	17,733	6,106	8,680	1,251	7,429	6,573	37	79
Sun Life of Canada	28,848	10,276	13,887	2,572	11,315	10,046	35	79
Lincoln National	13,533	2,178	9,909	1,377	8,532	7,206	53	80
London and Manchester	8,568	1,519	5,922	677	5,245	4,674	55	80
Gan	12,235	2,090	8,615	912	7,703	6,881	56	81
Hill Samuel	6,199	918	4,582	700	3,882	3,483	56	82
Standard Life	7,435	889	5,663	1,267	4,396	4,052	54	83
Colonial	8,732	3,119	4,952	587	4,365	3,652	42	84
Sedgwick	16,835	9,504	5,281	1,821	3,460	2,981	18	85
CIS	44,681	7,365	35,191	14,003	21,188	16,947	38	86
Friends Provident	7,101	1,281	5,204	814	4,390	3,997	56	86
Berkeley Independent	185	122	42	29	13	11	6	88
Hogg Robinson	2,299	832	1,293	444	849	758	33	88
NatWest	15,396	4,852	9,727	1,266	8,461	7,575	49	89
Canada Life	5,622	499	5,048	661	4,387	3,958	70	91
Pearl	47,541	4,303	41,247	5,856	35,391	33,273	70	91
M&E Network	319	179	115	29	86	84	26	92
Equitable Life	7,629	1,964	5,274	1,804	3,470	3,240	42	92
Legal & General	36,961	15,235	20,676	1,944	18,732	17,086	46	93
Allied Dunbar	19,654	4,286	14,531	3,850	10,681	10,146	52	93
Albany Life	3,105	713	2,268	216	2,052	1,963	63	93
Wesleyan	4,180	315	3,769	960	2,809	2,747	66	96
Royal London	13,532	1,167	12,363	1,546	10,816	10,791	80	100

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 identified for review ((F/A)x100).

H: cases completed, including exclusions, as a percentage of cases identified for review (((B+D+F)/A)x100).

Press Notices 1998 July to December Index