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8 April 1998

PENSION FIRMS ASKED FOR ONGOING COMMITMENT TO PUT RIGHT PENSIONS MIS-SELLING

The latest monthly figures from firms show steady progress in clearing up pensions mis-selling, Economic Secretary, Helen Liddell announced today.

The end-March figures for the 41 companies she is monitoring show:

  • reviews of about 69 per cent of priority cases are now completed;
  • 7 firms have yet to complete half their cases, and
  • 14 firms have now completed over 75 per cent of their cases.

Publishing the figures, Mrs Liddell said:

"Most of the 41 firms have continued to make steady progress but this must be sustained. At the same time firms must also look to the next phase of the review, and build on the consultation launched by the regulators last month."

Mrs Liddell said she appreciated the constructive reaction of the Association of British Insurers (ABI) to the regulators' initiative on the second phase of the review, and hoped it would continue over the months ahead.

The Minister also welcomed the ABI's plans to assist and encourage Independent Financial Advisers to carry out their pension reviews. She said :

"These proposals give welcome recognition to the fact that each and every firm's good name is dependent on the reputation of the industry as a whole. Firms must work together to clean up the industry's image. "

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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 for the end of March are attached.

3. Recent fines on pension firms include:

Lincoln Independent Ltd July 1997 75,000 Pounds
The M & E Network August 1997 100,000 Pounds
DBS Financial Management September 1997 425,000 Pounds
Friends Provident September 1997 450,000 Pounds
Moran Webb Insurance Consultants October 1997 5,0000 Pounds
Albany Life November 1997 375,000 Pounds
Ward Consultancy December 1997 20,000 Pounds
Jacobs Insurance Brokers Ltd December 1997 10,000 Pounds
Cox Hepburn Financial Services Ltd January 1998 15,000 Pounds
London & Manchester January 1998 525,000 Pounds
Countrywide Independent Advisors February 1998 250,000 Pounds
Britannic Assurance March 1998 525,000 Pounds



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PROGRESS BY PENSIONS FIRMS IN COMPLETING REVIEWS OF PERSONAL

PENSIONS MIS-SELLING IN THE PERIOD TO THE END OF MARCH 1998

A B C D E F G H
Under 25% of cases resolved
DBS 3,392 128 222 68 154 105 3 9
25-50% of cases resolved
Gan 11,369 867 4,417 556 3,861 2,927 26 38
Financial Options 353 108 36 19 17 14 4 40
Lincoln National 13,326 1,483 5,556 1,042 4,514 2,881 22 41
Burns Anderson 1,080 276 178 102 76 61 6 41
Countrywide 4,759 1,875 262 165 97 77 2 44
Windsor Life 9,475 2,837 1,958 276 1,682 1,402 15 48
50-75% of cases resolved
Standard Life 6,947 677 3,305 919 2,386 2,110 30 53
Abbey Life 17,354 4,251 6,200 912 5,288 4,183 24 54
Friends Provident 6,876 979 3,259 493 2,766 2,428 35 57
CIS 43,039 3,640 25,973 12,897 13,076 8,448 20 58
Canada Life 5,528 307 3,447 549 2,901 2,354 43 58
Colonial 8,242 2,238 3,205 360 2,845 2,219 27 58
London and Manchester 8,255 1,154 4,073 511 3,562 3,175 38 59
Royal & Sun Alliance 15,753 2,350 7,980 941 7,039 6,020 38 59
IFA Network 267 54 107 76 31 29 11 60
Hill Samuel 6,026 791 3,234 623 2,611 2,191 36 60
Sun Life of Canada 26,969 7,594 10,330 1,988 8,342 6,886 26 61
NatWest 14,637 4,162 6,277 1,040 5,237 4,076 28 63
Allied Dunbar 18,867 3,358 3,149 7,586 6,066 10,735 32 67
Albany Life 2,931 587 1,799 161 1,638 1,253 43 68
Britannic 19,120 4,740 10,423 2,638 7,785 5,809 30 69
Equitable Life 7,384 1,693 3,761 1,460 2,301 2,024 27 70
Sedgwick 15,669 7,818 3,719 1,459 2,260 1,996 13 72
Berkeley Independent 143 87 18 14 4 3 2 73
Guardian 8,976 1,160 6,081 932 5,149 4,547 51 74
Over 75% of cases resolved
Legal & General 36,726 14,568 16,131 1,590 14,541 11,390 31 75
M&E Network 302 167 65 24 41 37 12 75
Lloyd's TSB 49,062 10,840 28,883 6,093 22,790 20,371 42 76
Commercial Union 7,747 1,246 5,137 767 4,370 3,969 51 77
Godwins 1,478 109 1,229 441 788 611 41 79
Royal London 12,355 1,112 9,590 1,404 8,186 7,281 59 79
Wesleyan 4,173 255 3,285 956 2,329 2,103 50 79
Pearl 46,213 3,430 38,760 5,572 33,188 28,987 63 82
Norwich Union 7,389 2,233 4,619 728 3,891 3,261 44 84
Prudential 72,010 19,432 52,563 3,866 48,697 37,519 52 84
Barclays 16,981 6,197 9,411 2,169 7,242 6,265 37 86
Hogg Robinson 2,084 821 1,102 386 716 593 28 86
AXA Equity and Law 3,943 774 2,817 600 2,217 2,070 52 87
Midland 4,840 498 4,243 631 3,612 3,334 69 92



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).

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Press Notices 1998 January to June Index