HISTORIC PRESS RELEASE : Regulators consult on next phase of review of pensions mis-selling – Helen Liddell encourages constructive contribution [March 1998]

The press release issued by HM Treasury on 12 March 1998.

Helen Liddell Encourages Constructive Contribution

Further progress has been made in clearing up pensions mis-selling, Economic Secretary Helen Liddell announced today.

Mrs Liddell published the monthly figures of the 41 companies she is monitoring. The table shows:

• about 65 per cent of the priority cases identified for review are now completed;
• eight firms have yet to complete half their cases;
• one is still some way short of the 10 per cent mark; and
• seven of the 41 companies have now completed over 75 per cent of their cases.

Publishing the figures, the Minister said:

“A number of firms have now resolved over three quarters of their cases identified for review.  Some of the firms are now getting close to the point where they will have completed their priority cases. This is welcome news.

“The first priority has rightly been to address the more pressing categories of cases. But they are not the only victims of pensions mis-selling and it is now important to look ahead at how to address the less pressing cases.  Recent research that revealed that as many as 1.8 million people might need their cases  looked into is alarming. “

Mrs Liddell welcomed the publication of a Financial Services Authority (FSA)/Personal Investment Authority (PIA) consultation document setting out proposals for taking forward the review of pensions mis-selling into its second phase and urged everyone with an interest, including investors, occupational pension schemes and firms, to take part. The Minister said:

“I welcome consultation by the regulators because this is the only way to see that the final policy adopted is the best way forward, in the interests of the investors and ultimately in the interests of the industry. I hope that everyone will make a constructive contribution.”

Mrs Liddell also welcomed the PIA’s announcement that it is investigating apparent failures to meet the regulator’s targets by about 600 small firms, with a view to taking disciplinary action. She said:

“Both the Government and the regulators are determined that all firms, including small firms, take all possible steps to complete their reviews. Far too many small firms appear to have failed to tackle even these most pressing cases. This is simply not acceptable, and the PIA’s action is to be commended.