Finance and Insurance Market: Underwriting Fees Debate
Full Debate: Read Full DebateLord Harrison
Main Page: Lord Harrison (Labour - Life peer)Department Debates - View all Lord Harrison's debates with the HM Treasury
(13 years, 9 months ago)
Lords Chamber
To ask Her Majesty’s Government what assessment they have made of the level of underwriting fees in the United Kingdom finance and insurance market.
My Lords, the Office of Fair Trading is currently undertaking analysis of the way the underwriting market works and assessing whether there is potential for improving the way it functions. The report will consider how underwriting services are purchased, how underwriting services are provided and how the regulatory environment affects the provision of these services. The report is intended to be published later this month. The Government await with interest the findings of the report.
My Lords, given that City underwriters have in recent years pocketed some £2.5 billion through raised insurance claims without paying out once, not even on the capital-raising bids from RBS and Bradford & Bingley, does the Minister accept that those who lose out are the British shareholder, investor, saver and taxpayer? In light of this, will HMG undertake to implement in full Douglas Ferrans’s report on this subject to increase confidence in the industry, transparency and competition, and bring greater and strengthened rights to shareholders?