HM Treasury News Release
80/97 9 July 1997
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PENSION COMPANIES FAIL TO DELIVER COMPENSATION
Figures published today by the Economic Secretary, Helen
Liddell, reveal that performance by the 24 pension companies
compensating those missold pensions is slower than expected.
This is the first set of figures, to be published on a monthly
basis, to show how firms are progressing compensation cases
for victims of personal pensions misselling.
The figures show that only two companies have managed to
compensate over 10 per cent of their cases and two companies
failed to compensate in less than one per cent of their cases.
Publishing the figures, in response to a Parliamentary
Question from Stephen Timms [East Ham], Mrs Liddell said:
"The volume of cases cleared is extremely disappointing.
All the firms in the table have a great deal more work to
do. Some appear hardly to have begun.
"It is now imperative that all firms - not just these 24
- which have sold personal pension should make serious
efforts to improve the performance in completing their
caseloads. This is not only in the interests of their
customers but also of their own reputations with the general
public.
"I will decide once I have seen some further figures to
measure progress what further action may be called for."
NOTES TO EDITORS
1. The text of the parliamentary question and answer is
attached.
2. If you have access to the Internet you can find this news
release at http://www.hm-treasury.gov.uk. Other Treasury
material can also be found at this address.
HMT REF: 0769W 97/98 FOR ANSWER ON 09 JULY
1997
175 Mr Stephen Timms
LA - EAST HAM
To ask Mr Chancellor of the Exchequer, what progress has been
made towards providing redress for the victims of misselling of
personal pensions. [7904]
MRS HELEN LIDDELL
In my earlier reply to my hon Friend the Member for East Ham (Mr
Timms) on 24 June, (OR, WA, Cols 454-5) I undertook to publish
information each month about the cases handled by the 24 firms
which have most cases to review. These are the firms for which
the regulators (the Securities and Investments Board and the
Personal Investment Authority) have published targets for
completion of case reviews. Below is a table containing the
information provided to me by these firms about progress with
their casework to end June.
The figures in the table, which are those submitted by the 24
firms themselves, provide a benchmark from which future progress
can be measured .
The volume of cases cleared is extremely disappointing. All the
firms in the table have a great deal more work to do. Some
appear hardly to have begun.
It is now imperative that all firms - not just these 24 - which
have sold personal
pensions should make serious efforts to improve their performance
in completing their caseloads. This is not only in the interests
of their customers but also of their own reputations with the
general public. The regulators will continue to monitor the
firms' performance against the targets they have been set.
I will decide once I have seen some further figures to measure
progress what further action may be called for.
PENSION FIRM STATISTICS AS AT END JUNE 1997
Name of Company A B C D E F
Hogg Robinson 602 50 8 2 1 0
Colonial 6754 152 663 503 32 0
Gan 8358 43 133 79 63 1
Sedgwick 6731 359 436 262 64 1
Abbey Life 15993 950 1116 238 169 1
Allied Dunbar 16422 1177 761 281 182 1
Lincoln National 12301 830 541 203 148 1
Windsor Life 7830 0 164 157 131 2
London & Manchester 6944 64 493 399 117 2
Cooperative Insurance 41762 1025 7195 1280 825 2
Equitable Life 10761 4097 3788 437 307 3
Britannic 12360 0 1355 728 443 4
Sun Life of Canada 25682 1628 1279 1161 1002 4
NatWest 13192 2657 1801 1059 573 4
United Assurance 12648 382 1521 783 585 5
Pearl 39548 897 4486 3040 2076 5
Prudential 58606 35 13829 12861 3128 5
Royal London 9357 138 1280 748 532 6
Legal & General 33282 12147 3442 2590 2046 6
Norwich Union 6772 1824 1009 548 428 6
Lloyds/TSB 46562 4662 6836 5166 3310 7
Royal Sun Alliance 14995 927 1933 1605 1213 8
Guardian 8225 264 1511 1175 855 10
Barclays Life 16700 5134 4413 3121 2315 14
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 redress has been offered
E: cases where redress has been accepted. This is a subset of
assessments completed
F: cases where redress has been accepted as a percentage of
cases identified for review. Some further cases will have
been completed without redress being due.