210/98
16 December 1998
PATRICIA HEWITT BACKS SCHEME TO ASSIST PENSIONS REVIEW
The Association of British Insurers' PASS initiative is a welcome development, which will be of considerable benefit to the review of personal pension mis-selling, the Economic Secretary Patricia Hewitt said today.
The Pension Advisers Support Scheme (PASS) offers small firms assistance with actuarial facilities and financing for the review. Ms Hewitt said:
"I congratulate the ABI on this welcome initiative and note that all of the 30 major providers have joined PASS. The scheme has aroused considerable interest among IFAs and I am confident that it will give a significant boost to the pensions review."
Of the 21 firms whose results are published today:
-
all but two have resolved over 75 per cent of their cases. fourteen firms have now resolved over 90 per cent of their cases.
Ms Hewitt stressed that firms must maintain their progress and ensure that all priority cases are completed by 31 December. She said:
"I am pleased that most of the industry has recognised that it is in everyone's interest for the pensions review to be completed on time. The regulators will not tolerate further delays, and I fully support their efforts to see phase 1 completed."
The Minister hoped that, as 1999 approaches, all firms would be making New Year's resolutions to put their customers first in phase 2 of the review. She said:
"I hope firms have learned lessons from phase 1, and that we will not see delaying tactics used against the review again. Firms must put their customers first, and adhere to the regulators timetable, so that we can put this whole sorry scandal behind us."
NOTES TO EDITORS
1. The Economic Secretary published the figures in response to a Parliamentary Question from Ms Jackie Lawrence MP [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. To date 20 firms have been taken off the list. These are: Albany Life, Allied Dunbar, AXA Equity & Law, Barclays Life, Britannic Assurance, Canada Life, Commercial Union, Gan, Godwins, Guardian, Lloyds TSB, M & E Network, Midland Bank, National Westminster, Norwich Union, Prudential, Royal London, Royal & Sun Alliance, United Assurance and Wesleyan.
3. The Personal Investment Authority (PIA) has levied fines related to pensions mis-selling. These include:
Dec 97 Albany Life 375,000
| Nov 98 | Royal & Sun Alliance | 225,000 |
| Nov 98 | Raynes Hodder Davison | 10,000 |
| Nov 98 | Interdependence | 175,000 |
| Oct 98 | IFA Network | 250,000 |
| Oct 98 | Sedgewick Noble Lowndes | 100,000 |
| Jul 98 | Minet Consultancy Services | 250,000 |
| Jun 98 | J&H Marsh and McLennan | 200,000 |
| Jun 98 | Lincoln Assurance | 70,000 |
| Jun 98 | Financial Options | 400,000 |
| Apr 98 | Sun Life of Canada | 600,000 |
| Mar 98 | Brittanic Assurance | 525,000 |
| Feb 98 | Countrywide | 250,000 |
| Jan 98 | London & Manchester | 525,000 |
| Jan 98 | Cox Hepburn Financial Services | 15,000 |
| Dec 97 | Ward Consultancy | 20,000 |
| Oct 97 | Moran Webb Insurance | 15,000 |
| Sep 97 | Friends Provident Life Office | 450,000 |
| Sep 97 | DBS Financial Management | 425,000 |
| Aug 97 | M&E Network | 100,000 |
| Jul 9 | Lincoln Independent | 775,000 |
| Apr 97 | Berkeley Independent Advisors | 70,000 |
4. 225 small fines have also been levied, mainly on Independent Financial Advisors. At 10 December 1998, total fines amounted to 5.7 million Pounds.
PROGRESS BY PENSIONS FIRMS IN RESOLVING CASES OF PERSONAL PENSIONS MIS-SELLING IN THE PERIOD TO THE END OF NOVEMBER 98
| A | B | C | D | E | F | G | H | |
| 50-75% of cases resolved | ||||||||
| Countrywide | 5,293 | 2,725 | 584 | 222 | 362 | 200 | 4 | 59 |
| IFA Network | 406 | 117 | 169 | 111 | 58 | 56 | 14 | 70 |
| Over 75% of cases resolved | ||||||||
| DBS | 2,446 | 955 | 1,054 | 253 | 801 | 641 | 26 | 76 |
| Burns Anderson | 1,288 | 440 | 685 | 265 | 420 | 364 | 28 | 83 |
| Financial Options | 577 | 398 | 99 | 33 | 66 | 54 | 12 | 84 |
| Windsor Life | 9,678 | 4,172 | 5,105 | 333 | 4,772 | 3,968 | 41 | 88 |
| Sun Life of Canada | 29,150 | 11,336 | 16,081 | 2,783 | 13,298 | 11,463 | 39 | 88 |
| Lincoln National | 13,605 | 2,255 | 10,950 | 1,430 | 9,520 | 8,520 | 63 | 90 |
| Standard Life | 7,515 | 914 | 6,255 | 1,314 | 4,941 | 4,555 | 61 | 90 |
| Colonial | 8,732 | 3,169 | 5,264 | 613 | 4,651 | 4,154 | 48 | 91 |
| Sedgwick | 16,928 | 9,969 | 5,922 | 1,950 | 3,972 | 3,526 | 21 | 91 |
| Abbey Life | 18,114 | 6,742 | 10,748 | 1,396 | 9,352 | 8,412 | 46 | 91 |
| Berkeley Independent | 186 | 123 | 53 | 32 | 21 | 15 | 8 | 91 |
| Hill Samuel | 6,118 | 936 | 5,002 | 719 | 4,283 | 3,970 | 65 | 92 |
| London and Manchester | 8,614 | 1,604 | 6,886 | 711 | 6,175 | 5,642 | 65 | 92 |
| CIS | 44,681 | 7,958 | 36,594 | 14,197 | 22,397 | 19,575 | 44 | 93 |
| Friends Provident | 7,126 | 1,333 | 5,526 | 837 | 4,689 | 4,486 | 63 | 93 |
| Pearl | 48,506 | 4,802 | 42,411 | 5,855 | 36,556 | 34,874 | 72 | 94 |
| Legal & General | 37,366 | 15,359 | 21,648 | 2,049 | 19,599 | 18,230 | 49 | 95 |
| Hogg Robinson | 2,338 | 871 | 1,465 | 488 | 977 | 875 | 37 | 96 |
| Equitable Life | 7,629 | 1,968 | 5,528 | 1,833 | 3,695 | 3,492 | 46 | 96 |