Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of (a) the value of payments made to qualifying With-Profits Annuitants under the Equitable Life Payments Scheme for each year since 2019, and (b) the projected value of future payments to qualifying With-Profits Annuitants under the Equitable Life Payments Scheme to the year 2050.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016. The methodology for calculating payments to Equitable Life policyholders was published in 2011 and extensively reviewed and there are no plans to reopen any previous decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
The value of payments made to With-Profits Annuitants from the Equitable Life Payment Scheme in each financial year since 2019 is as follows:
2019-20 £31,137,789
2020-21 £30,246,425
2021-22 £27,986,074
The projected value of remaining payments to WPAs until 2050 is £251 million.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will require Willis Towers Watson to publish the assumptions and intermediate calculations used in calculating the relative losses of Equitable Life policyholders following maladministration.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016. The methodology for calculating payments to Equitable Life policyholders was published in 2011 and extensively reviewed and there are no plans to reopen any previous decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
The value of payments made to With-Profits Annuitants from the Equitable Life Payment Scheme in each financial year since 2019 is as follows:
2019-20 £31,137,789
2020-21 £30,246,425
2021-22 £27,986,074
The projected value of remaining payments to WPAs until 2050 is £251 million.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, further to the methodology previously published, if he will take steps to publish the assumptions and intermediate calculations used in calculating the relative losses of Equitable Life policyholders following maladministration.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016. The methodology for calculating payments to Equitable Life policyholders was published in 2011 and extensively reviewed and there are no plans to reopen any previous decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
The value of payments made to With-Profits Annuitants from the Equitable Life Payment Scheme in each financial year since 2019 is as follows:
2019-20 £31,137,789
2020-21 £30,246,425
2021-22 £27,986,074
The projected value of remaining payments to WPAs until 2050 is £251 million.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken in response to the close of the call for evidence on the Review of the UK’s AML/CTF regulatory and supervisory regime.
Answered by Richard Fuller
On the 24 June, HM Treasury published the review of the UK’s AML/CFT regulatory and supervisory regime, that set out the strengths and deficiencies of the UK’s regime. Alongside a forward-looking document, publication of two post-implementation reviews was legally required, assessing the effectiveness of the Money Laundering Regulations 2017 and the Oversight of Professional Body AML Supervision Regulations 2017.
The review is structured around systemic, regulatory and supervisory effectiveness and focuses on improving the effectiveness of the Money Laundering Regulations, ensuring the application of an effective risk-based controls across the regulated sector and continuing to develop a world-leading anti-money laundering supervision regime. The Treasury has also committed to issuing two further consultations, on supervisory reform and potential amendments to the MLRs.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken in response to the closure of the consultation on implementation of OECD Pillar 2.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The OECD’s two pillar solution to the tax challenges resulting from digitalisation represents a major reform of the international tax framework and will help to ensure multinational businesses pay their fair share, with the right companies paying the right amount of tax in the right place.
On 20 July 2022, the Government published a response to the consultation on the implementation of Pillar 2 in the UK. The response can be found here: https://www.gov.uk/government/consultations/oecd-pillar-2-consultation-on-implementation. Draft legislation was also published, and the Government welcomes further consultation on this. The draft legislation can be found here: https://www.gov.uk/government/publications/introduction-of-the-new-multinational-top-up-tax.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will provide a timeline for taking forward reforms to the UK’s financial services regulatory framework for capital markets.
Answered by Richard Fuller
As the Chancellor laid out in his speech at Mansion House on Tuesday 19th July, the Government will take forward reforms to the UK’s regulatory framework for capital markets in the Financial Services and Markets Bill.
In particular, the Bill will increase the competitiveness of our capital markets, allowing us to reform the Prospectus Regime, as recommended by Lord Hill. It will also take forward outcomes of the Wholesale Capital Markets review, stripping away poorly crafted EU rules like the double volume cap and the share trading obligation.
The roadmap for the delivery of the full set of reforms under the WMR is set out in detail in the recent consultation and consultation response document, which are both available here: https://www.gov.uk/government/consultations/uk-wholesale-markets-review-a-consultation.
While the Government has set out its prioritisation for its capital markets reforms, the exact timeline for delivery will rely on Parliamentary timetabling.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, which industry stakeholders his Department met with in advance of the launch of the Solvency II Review consultation.
Answered by Richard Fuller
Treasury Ministers and officials have had meetings with a range of stakeholders both during and in advance of the launch of the consultation on the review of Solvency II published in April 2022, including representatives from insurance underwriters, brokers and industry groups. Records of ministerial meetings are published quarterly and are available on gov.uk.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to review the adequacy of the transparency of exchange fees charged to UK consumers by foreign exchange services.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers.
Where currency conversion is provided as part of a payment transaction, the Payment Services Regulations 2017 make requirements on UK payment service providers regarding disclosure of fees and charges to the payer, for example, the exchange rate used for a currency conversion transaction. Provisions under the Cross Border Payments Regulation, which continue to apply in the UK as part of retained EU law, also contribute to price transparency, with further requirements regarding how foreign exchange costs must be communicated before a payment is made. The Financial Conduct Authority (FCA) is the relevant regulatory authority with responsibility for monitoring and enforcing these requirements, and should the FCA have concerns regarding firms’ compliance with the requirements on fee advertisement, it will take appropriate action as necessary
These regulations, among other things, are intended to enable payment service users such as consumers and SMEs to make informed decisions when making use of payment services, including where currency conversion is offered as part of a payment transaction. The Government has no plans at this time to amend the requirements on firms, but keeps all policy under review.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on (a) consumers and (b) SMEs of high unadvertised exchange fees charged by some foreign exchange services.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers.
Where currency conversion is provided as part of a payment transaction, the Payment Services Regulations 2017 make requirements on UK payment service providers regarding disclosure of fees and charges to the payer, for example, the exchange rate used for a currency conversion transaction. Provisions under the Cross Border Payments Regulation, which continue to apply in the UK as part of retained EU law, also contribute to price transparency, with further requirements regarding how foreign exchange costs must be communicated before a payment is made. The Financial Conduct Authority (FCA) is the relevant regulatory authority with responsibility for monitoring and enforcing these requirements, and should the FCA have concerns regarding firms’ compliance with the requirements on fee advertisement, it will take appropriate action as necessary
These regulations, among other things, are intended to enable payment service users such as consumers and SMEs to make informed decisions when making use of payment services, including where currency conversion is offered as part of a payment transaction. The Government has no plans at this time to amend the requirements on firms, but keeps all policy under review.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much the Financial Conduct Authority has spent in the last 12 months on legal fees and advice relating to its dispute with Unite on recognising a trade union.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Financial Conduct Authority (FCA) is operationally independent from the Government. Questions about the FCA’s day to day decision making, including details about staffing, budget and spending are matters for the independent FCA.
These questions have therefore been passed to the FCA who will respond directly to the honourable member by letter. A copy of the letter will be placed in the Library of the House.