APPOINTMENTS TO THE POLICYHOLDERS PROTECTION BOARD

Melanie Johnson, Economic Secretary to the Treasury, has made the following appointments to the insurance Policyholders Protection Board.

Chairman: Sir John Carter, formerly Chief Executive of Commercial Union plc and a director of the National House Building Council.

Members: Peter Foster, Group Finance Director, CGU plc

Frances Harrison, senior policy and development officer, National Consumer Council.

Susan Ward, General Counsel, London Clearing House Limited.

The new Chairman has been appointed, and the members above re-appointed, until the activities of the Policyholders Protection Board are transferred to the forthcoming Financial Services Compensation Scheme next year, or for two years. The Board is made up of five persons, appointed by the Treasury. The fifth member is Andrew Young, Managing Director, NFU Mutual.

The Board was established under the Policyholders Protection Act 1975. The Act provides a system of compensation of certain policyholders if insurance companies carrying on business in the UK get into financial difficulties.

Under the Financial Services and Markets Act 2000, a single new financial services compensation scheme will be set up and include within its remit the functions now carried out under the 1975 Act. The new scheme is expected to come into effect next year.

NOTES TO EDITORS

1. Non-media enquiries should be addressed to the Treasury public enquiry unit on 020 7270 4558.

2. Media enquiries should be addressed to Charles Keseru in the Treasury press office on 020 7270 5188.