HM Treasury News Release
168/98 20 October 1998
------------------------------------------------------------
TIME RUNS OUT FOR SEVEN MORE FIRMS
Further advances have been made towards completion of the first
phase of the reviews of personal pensions mis-selling.
The time limit for completion of phase 1 of the review, set by
the Personal Investment Authority (PIA), has expired for a
further seven firms: Albany Life, Allied Dunbar, Canada Life,
Gan, National Westminster, Royal London and Wesleyan. Consistent
with the treatment of the twelve firms already removed from the
Treasury's monthly list, the Economic Secretary, Patricia Hewitt
said:
"These seven firms must continue to update me on their
progress, but I now look to the PIA for its assessment of
whether they have in fact met their targets. If they have,
they will be removed from the list next month."
Of the 29 firms whose results are published today:
four have resolved less than 75 per cent of their cases. All
four are networks of independent financial advisers; and
all firms have now resolved over 60 per cent of their cases.
While the Minister said she was pleased about the progress made
by the pensions firms, she stressed that the completion of cases,
as measured in the Treasury's published table, is not the end of
the process. She said:
"With many firms close to their targets, it is now time for
them to turn their attention from review to redress. I want
to see the redress agreed between firms and customers
delivered as a matter of priority. After the appallingly
slow start to the review, firms' credibility with their
customers rests on a swift resolution."
The PIA is monitoring firms' follow up action to deliver redress,
and will take action against laggards where this is warranted.
The Minister stressed that investors should play their part and
respond in good time to any questions from firms. She also called
on occupational schemes to help by making every effort to speed
things along.
NOTES TO EDITORS
1.The Economic Secretary published the figures in response
to a Parliamentary Question from Jackie Lawrence [Preseli
Pembrokeshire].
2.The former Economic Secretary, Helen Liddell, said in
November 1997 that firms which have met their targets will
have their names removed from the list published by the
Treasury. In July (Treasury news release 116/98) 12 companies
were taken off the list. These were: AXA Equity & Law,
Barclays Life, Britannic Assurance, Commercial Union, Godwins,
Guardian, Lloyds TSB, Midland Bank, Norwich Union, Prudential,
Royal & Sun Alliance and United Assurance.
3.The Personal Investment Authority (PIA) has levied fines
related to pensions mis-selling. These include:
The M&E Network Aug 97 #100,000
DBS Financial Management Sep 97 #425,000
Friends Provident Sep 97 #450,000
Albany Life Nov 97 #375,000
London & Manchester Jan 98 #525,000
Countrywide Feb 98 #250,000
Britannic Assurance Mar 98 #525,000
Sun Life of Canada Apr 98 #600,000
Financial Options Jun 98 #250,000
Lincoln Jun 98 #70,000
J&H Marsh and McLennan Jun 98 #200,000
Minet Consultancy Services Jul 98 #250,000
4.Also, in July August and September, the PIA fined 121
firms of independent financial advisers a total of #461,750.
5.If you have access to the Internet, you can find this
news release and other Treasury information at http://www.hm-
treasury.gov.uk
PROGRESS BY PENSIONS FIRMS IN RESOLVING CASES OF PERSONAL
PENSIONS MIS-SELLING IN THE PERIOD TO THE END OF SEPTEMBER
1998.
50-75% of cases resolved
Countrywide 5,020 2,727 322 191 131 106 2 60
DBS 2,410 845 837 201 605 439 18 62
Financial
Options 554 294 74 26 48 35 6 64
Burns Anderson 1,267 420 512 219 293 230 18 69
Over 75% of cases resolved
IFA Network 378 120 166 111 55 54 14 75
Windsor Life 9,645 3,971 4,080 320 3,760 3,147 33 77
Abbey Life 17,733 6,106 8,680 1,251 7,429 6,573 37 79
Sun Life
of Canada 28,848 10,276 13,887 2,572 11,315 10,046 35 79
Lincoln
National 13,533 2,178 9,909 1,377 8,532 7,206 53 80
London
and
Manchester 8,568 1,519 5,922 677 5,245 4,674 55 80
Gan 12,235 2,090 8,615 912 7,703 6,881 56 81
Hill Samuel 6,199 918 4,582 700 3,882 3,483 56 82
Standard Life 7,435 889 5,663 1,267 4,396 4,052 54 83
Colonial 8,732 3,119 4,952 587 4,365 3,652 42 84
Sedgwick 16,835 9,504 5,281 1,821 3,460 2,981 18 85
CIS 44,681 7,365 35,191 14,003 21,188 16,947 38 86
Friends
Provident 7,101 1,281 5,204 814 4,390 3,997 56 86
Berkeley
Independent 185 122 42 29 13 11 6 88
Hogg Robinson 2,299 832 1,293 444 849 758 33 88
NatWest 15,396 4,852 9,727 1,266 8,461 7,575 49 89
Canada Life 5,622 499 5,048 661 4,387 3,958 70 91
Pearl 47,541 4,303 41,247 5,856 35,391 33,273 70 91
M&E Network 319 179 115 29 86 84 26 92
Equitable
Life 7,629 1,964 5,274 1,804 3,470 3,240 42 92
Legal &
General 36,961 15,235 20,676 1,944 18,732 17,086 46 93
Allied
Dunbar 19,654 4,286 14,531 3,850 10,681 10,146 52 93
Albany Life 3,105 713 2,268 216 2,052 1,963 63 93
Wesleyan 4,180 315 3,769 960 2,809 2,747 66 96
Royal London 13,532 1,167 12,363 1,546 10,816 10,791 80 100
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).
# = pounds sterling