# = pounds sterling
HM Treasury News Release
210/98 16 December 1998
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PATRICIA HEWITT BACKS SCHEME TO
ASSIST PENSIONS REVIEW
The Association of British Insurers' PASS initiative is a welcome
development, which will be of considerable benefit to the review
of personal pension mis-selling, the Economic Secretary Patricia
Hewitt said today.
The Pension Advisers Support Scheme (PASS) offers small firms
assistance with actuarial facilities and financing for the
review. Ms Hewitt said:
"I congratulate the ABI on this welcome initiative and note
that all of the 30 major providers have joined PASS. The
scheme has aroused considerable interest among IFAs and I
am confident that it will give a significant boost to the
pensions review."
Of the 21 firms whose results are published today:
all but two have resolved over 75 per cent of their cases.
fourteen firms have now resolved over 90 per cent of their
cases.
Ms Hewitt stressed that firms must maintain their progress and
ensure that all priority cases are completed by 31 December. She
said:
"I am pleased that most of the industry has recognised
that it is in everyone's interest for the pensions review
to be completed on time. The regulators will not tolerate
further delays, and I fully support their efforts to see
phase 1 completed."
The Minister hoped that, as 1999 approaches, all firms would be
making New Year's resolutions to put their customers first in
phase 2 of the review. She said:
"I hope firms have learned lessons from phase 1, and that
we will not see delaying tactics used against the review
again. Firms must put their customers first, and adhere to
the regulators timetable, so that we can put this whole
sorry scandal behind us."
NOTES TO EDITORS
1. The Economic Secretary published the figures in response to
a Parliamentary Question from Ms Jackie Lawrence MP [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. To
date 20 firms have been taken off the list. These are: Albany
Life, Allied Dunbar, AXA Equity & Law, Barclays Life, Britannic
Assurance, Canada Life, Commercial Union, Gan, Godwins, Guardian,
Lloyds TSB, M & E Network, Midland Bank, National Westminster,
Norwich Union, Prudential, Royal London, Royal & Sun Alliance,
United Assurance and Wesleyan.
3. The Personal Investment Authority (PIA) has levied fines
related to pensions mis-selling. These include:
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Nov 98 Royal & Sun Alliance 225,000
Nov 98 Raynes Hodder Davison 10,000
Nov 98 Interdependence 175,000
Oct 98 IFA Network 250,000
Oct 98 Sedgewick Noble Lowndes 100,000
Jul 98 Minet Consultancy Services 250,000
Jun 98 J&H Marsh and McLennan 200,000
Jun 98 Lincoln Assurance 70,000
Jun 98 Financial Options 400,000
Apr 98 Sun Life of Canada 600,000
Mar 98 Brittanic Assurance 525,000
Feb 98 Countrywide 250,000
Jan 98 London & Manchester 525,000
Jan 98 Cox Hepburn Financial Services 15,000
Dec 97 Ward Consultancy 20,000
Dec 97 Albany Life 375,000
Oct 97 Moran Webb Insurance 15,000
Sep 97 Friends Provident Life Office 450,000
Sep 97 DBS Financial Management 425,000
Aug 97 M&E Network 100,000
Jul 97 Lincoln Independent 75,000
Apr 97 Berkeley Independent Advisors 70,000
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4. 225 small fines have also been levied, mainly on Independent
Financial Advisors. At 10 December 1998, total fines amounted to
5.7 million Pounds.
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 NOVEMBER 98
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A B C D E F G H
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50-75% of
cases resolved
Countrywide 5,293 2,725 584 222 362 200 4 59
IFA Network 406 117 169 111 58 56 14 70
Over 75% of
cases resolved
DBS 2,446 955 1,054 253 801 641 26 76
Burns Anderson 1,288 440 685 265 420 364 28 83
Financial Options 577 398 99 33 66 54 12 84
Windsor Life 9,678 4,172 5,105 333 4,772 3,968 41 88
Sun Life of Canada 29,150 11,336 16,081 2,783 13,298 11,463 39 88
Lincoln National 13,605 2,255 10,950 1,430 9,520 8,520 63 90
Standard Life 7,515 914 6,255 1,314 4,941 4,555 61 90
Colonial 8,732 3,169 5,264 613 4,651 4,154 48 91
Sedgwick 16,928 9,969 5,922 1,950 3,972 3,526 21 91
Abbey Life 18,114 6,742 10,748 1,396 9,352 8,412 46 91
Berkeley Independent 186 123 53 32 21 15 8 91
Hill Samuel 6,118 936 5,002 719 4,283 3,970 65 92
London and Manchester 8,614 1,604 6,886 711 6,175 5,642 65 92
CIS 44,681 7,958 36,594 14,197 22,397 19,575 44 93
Friends Provident 7,126 1,333 5,526 837 4,689 4,486 63 93
Pearl 48,506 4,802 42,411 5,855 36,556 34,874 72 94
Legal & General 37,366 15,359 21,648 2,049 19,599 18,230 49 95
Hogg Robinson 2,338 871 1,465 488 977 875 37 96
Equitable Life 7,629 1,968 5,528 1,833 3,695 3,492 46 96
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A: cases identifed 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).