All pensions firms must get reviews right: Helen Liddell

All firms, small and large, must ensure that reviews of pensions mis-selling cases are carried out properly, Economic Secretary Helen Liddell said today.

The Government is concerned about the performance of Independent Financial Advisers (IFAs) and small firms. It is important that these companies do not escape discipline if they have failed to review their personal pensions properly.

The Minister was speaking as the latest monthly progress statistics, for the end of January, were published. They show a continuing improvement in the position of the 41 pension firms with 60 per cent of their cases requiring review now completed.

Commenting on the figures, Mrs Liddell said:

"While this progress is welcome, no short cut should be taken at the customer's expense. Speed must not be allowed to compromise quality. The 250,000 Pounds fine on Countrywide Independent Advisers announced on 6 February, and the record fine of 525,000 Pounds last month on London & Manchester by the Personal Investment Authority (PIA) should serve as a warning to any firm that does this.

"All firms must get on with the job before the pensions industry can put this affair behind it. This includes IFAs, whose progress still leaves much to be desired. They should note that last month Cox Hepburn Financial Services was fined 15,000 Pounds by the PIA for its failure to satisfactorily undertake its review. Small firms will not escape sanction when they fail to act."

"It is in the interests of the industry and the public that this matter is cleared up as soon as possible."

Notes for editors

1. The Chief Secretary to the Treasury, Alistair Darling, published the figures in response to a Parliamentary Question from Margaret Moran MP for Luton South.

2. The Treasury publishes monthly information about how fast 41 pension companies are dealing with their cases. The figures for the end of January 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	15,000 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	25,000 Pounds
Countrywide Independent Advisors	February 1998	250,000 Pounds

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	A	B	C	D	E	F	G	H
Country wide* Under 25% of cases resolved
DBS	1302	38	127	52	75	42	3	10
25-50% of cases resolved
Burns Anderson	1,013	130	146	93	54	46	5	27
Gan	10,837	691	3132	432	2700	2020	19	29
Lincoln National	113,113	1,305	3251	929	2,322	1,841	14	31
Windsor Life	8328	1563	1284	169	1115	863	10	31
Financial Options	337	83	28	14	14	11	3	32
Canada Life	5480	266	2543	499	2044	1658	30	44
Friends Provident	6774	893	2416	370	2046	1816	27	45
Abbey Life	17,053	3955	4192	890	3302	2911	17	45
Standard Life	6852	539	2904	1000	1904	1734	25	48
CIS	42,411	3097	19160	12432	6728	4855	11	48
London & Manchester	8117	902	3451	472	2979	2601	32	49
Royal & Sun Alliance	15583	2000	6740	840	5900	4841	31	49
50 - 75% of cases resolved
Colonial	8365	2249	2368	326	2042	1653	20	51
Brittanic	18,632	4241	5713	2265	3448	2931	16	51
Hill Samuel	5945	733	2637	549	2088	1763	30	51
United Assurance	12,414	793	6787	1764	5023	3829	31	51
Sun Life of Canada	26,112	6307	8819	1724	7095	5808	22	53
IFA Network	223	31	90	64	26	24	11	53
Natwest	14,349	3849	5278	940	4338	3209	22	56
Allied Dunbar	18,,496	3042	8566	2853	5713	4461	24	56
Godwins	1478	84	848	336	512	436	29	58
Albany Life	2878	553	1525	113	1412	1072	37	60
Guardian	8831	992	5247	825	4422	3618	41	62
Commercial Union	7596	1127	4170	714	3456	3013	40	64
Lloyd's TSB	48,469	9427	25,519	5857	19,662	16,173	33	65
Berkeley Independent	116	65	11	9	2	2	2	66
Royal London	11,754	988	8,001	1344	6657	5549	47	67
Norwich Union	7,288	2159	3211	616	2595	2137	29	67
Pearl	45,194	2955	35,412	5642	29,770	22,415	50	69
Legal & General	36,151	14,191	14,047	1481	12,566	9,705	27	70
Wesleyan	4150	238	3096	918	2178	1815	44	72
Sedgwick	14,720	7,456	3,330	1,264	2,066	1,843	13	72
M&E Network	279	157	53	19	34	27	10	73
Over 75% of cases resolved
Midland	4,815	380	3,635	509	3,126	2,731	57	75
Prudential	71,781	18,008	49,484	3,385	46,099	32,628	45	75
Equitable Life	11,157	5,413	3,223	1,370	1,853	1,615	14	75
Barclays	16,881	6,115	8629	2036	6593	5558	33	81
AXA Equity and Law	3898	713	2654	630	2024	1841	47	82
Hogg Robinson	1998	814	954	343	611	507	25	83

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* Unable to provide figures that satisfy Personal Investment Authority
quality control.

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).