# = pounds sterling
HM Treasury News Release
152/98 21 September 1998
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MORE EFFORT NEEDED IN PENSIONS REVIEW:
PATRICIA HEWITT
There has been further progress in dealing with priority cases
among the firms, involved in personal pensions mis-selling,
monitored by the Treasury, Economic Secretary Patricia Hewitt
said today.
Of the 29 firms, whose results to the end of August are published
today, only seven have resolved less than 75 per cent of their
priority cases. Four of the those seven are networks of
independent financial advisers. In March only 7 of the firms
monitored by the Treasury had resolved over 75 per cent of their
cases.
Ms Hewitt said:
"These results show what can be accomplished when real
effort is put in by the firms. Every one of these firms
must now focus on the deadline of the end of the year
for completing their priority reviews. I want all these
firms to demonstrate to their customers, in the most
practical way possible, that they are putting things
right."
The Treasury's published figures mainly relate to cases involving
older investors, including those who have retired. In August the
Financial Services Authority (FSA) published guidelines on how
firms should review cases of younger investors.
Commenting on the FSA's initiative, the Minister said:
"It is now time for firms to start gearing up for the
second phase of work on remedying mis-selling of
personal pensions. I want to see all firms prepared and
ready to go at the start of next year. There must be
no return to the foot dragging which accompanied the
start of the phase I review.
"And frankly I am appalled at the attitude of some
independent financial advisers to the task ahead. Their
campaign to stop the phase 2 review shows a total
disregard for their customers' welfare and does them
no credit."
NOTES TO EDITORS
1. The figures published today are mainly priority cases as
defined by the FSA.
2. Recent fines, related to pensions mis-selling, levied by the
Personal Investment Authority include:
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Pounds
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The M&E Network Aug 1997 100,000
DBS Financial Management Sep 1997 425,000
Friends Provident Sep 1997 450,000
Albany Life Nov 1997 375,000
London & Manchester Jan 1998 525,000
Countrywide Feb 1998 250,000
Britannic Assurance Mar 1998 525,000
Sun Life of Canada Apr 1998 600,000
Financial Options June 1998 250,000
Lincoln June 1998 70,000
J&H Marsh & McLennan June 1998 200,000
Minet Consultancy Services July 1998 250,000
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3. In addition, in July and August 1998, PIA fined 87 firms of
independent financial advisers a total of 335,750 Pounds.
4. If you have access to the Internet, you can find this news
release and other Treasury material at
http://www.hm.treasury.gov.uk
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PROGRESS BY PENSIONS FIRMS IN RESOLVING CASES OF PERSONAL
PENSIONS MIS-SELLING IN THE PERIOD TO THE END OF AUGUST 1998
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50-75% of cases resolved
DBS 2,344 802 692 167 499 369 16 57
Countrywide 4,985 2,554 310 193 117 104 2 57
Financial
Options 460 213 61 23 38 30 7 58
Burns Anderson 1,245 418 413 195 218 173 14 63
Gan Life 12,213 2,021 8,079 840 7,239 5,866 48 71
Abbey Life 17,695 5,609 8,008 1,208 6,800 5,934 34 72
Windsor Life 9,620 3,790 3,683 310 3,373 2,857 30 72
Over 75% of cases resolved
Lincoln
National 13,458 2,123 9,334 1,344 7,990 6,588 49 75
London and
Manchester 8,568 1,459 5,456 640 4,816 4,368 51 75
IFA Network 372 118 165 110 55 53 14 76
Hill Samuel 6,196 906 4,355 698 3,657 3,217 52 78
Colonia 8,721 3,018 4,518 531 3,987 3,357 38 79
Berkeley
Independent 186 119 33 24 9 6 3 80
Standard Life 7,413 868 5,342 1,248 4,094 3,825 52 80
Sedgwick 16,809 9,200 4,781 1,754 3,027 2,700 16 81
CIS 44,681 6,757 33,540 13,744 19,796 15,997 36 82
Friends
Provident 7,083 1,206 4,973 783 4,190 3,813 54 82
NatWest 15,396 4,817 8,986 1,227 7,741 6,733 44 83
Canada Life 5,632 452 4,852 643 4,209 3,703 66 85
Albany Life 3,105 716 2,229 214 2,015 1,751 56 86
Sun Life
of Canada 28,620 12,679 13,397 2,511 10,886 9,555 33 86
Hogg Robinson 2,287 828 1,237 427 809 731 32 87
Equitable Life 7,629 1,948 5,150 1,787 3,363 3,052 40 89
Allied Dunbar 19,655 4,244 14,194 3,793 10,401 9,491 48 89
M&E Network 323 178 113 29 83 81 25 89
Pearl 47,541 4,181 40,680 5,819 34,861 32,527 68 89
Legal &
General 36,929 15,200 20,265 1,935 18,330 16,528 45 91
Wesleyan 4,182 312 3,742 986 2,756 2,642 63 94
Royal London 13,532 1,164 12,349 1,538 10,811 10,554 78 98
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A: cases identified asrequiring review
B: of A, cases where investor was informed that information gained during
assessment excluded casesfrom review
C: number of assessmentscompleted
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).