Tag: Lord Mendelsohn

The below Parliamentary question was asked by Lord Mendelsohn on 2016-01-19.

To ask Her Majesty’s Government what steps have been taken to speed up completion of the impact assessment for the Trade Union Bill.

Baroness Neville-Rolfe

The Government has published detailed Impact Assessments for the Bill – on the Trade Union Bill, on the Reporting of Facility Time in the Public Sector, and on the Prohibition on Deduction of Union Subscriptions from Wages in the Public Sector. At a meeting with Peers in December, Ministers committed to publishing prior to the Lords Committee stage of the Bill, and they were published in good time on 21 January.

The Trade Union Bill’s impact assessment has been subject to scrutiny by the independent Regulatory Policy Committee, and its opinion has been published alongside the impact assessment.

They were reviewed and approved by the relevant Ministers in the Department for Business, Innovation and Skills and the Cabinet Office. The Permanent Secretary has been kept informed of progress on all stages of the Bill.

Policy officials and analysts in both Departments have worked together to produce the impact assessments as quickly as possible while ensuring that the analysis was thorough.

We have not asked civil servants working on the Bill in the Department for Business, Innovation and Skills and the Cabinet Office to fill out time sheets.

We do not record which particular documents each special adviser reads. Special advisers have access to departmental papers in line with the Special Advisers’ Code of Conduct and provide advice to Ministers.

I am placing copies of the relevant documentation in the Library.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-03.

To ask Her Majesty’s Government whether they intend to legislate to change non-binding shareholder votes in relation to executive pay in public companies to binding votes if they pass the 50 per cent threshold.

Baroness Neville-Rolfe

It has not proved possible to respond to this question in the time available before Prorogation. Ministers will correspond directly with the noble Lord.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-24.

To ask Her Majesty’s Government what plans they have to introduce an enforceable regulatory regime of any type to tackle nuisance calls, texts and other forms of marketing for claims management companies.

Baroness Neville-Rolfe

The Government is taking forward a range of measures to tackle nuisance calls, which will increase consumer protection and choice by strengthening the Information Commissioner’s Office’s (ICO) ability to take enforcement action against organisations that break the law.

Specific actions include requiring direct marketing callers to display calling line identification; strengthening the ICO’s direct marketing guidance; and exploring the extension of the ICO’s powers of compulsory audit to more of the organisations that generate nuisance calls.

The Government also intends to establish a tougher regulatory regime for Claims Management Companies (CMCs) by transferring responsibility for claims management regulation to the Financial Conduct Authority; re-authorising all CMCs under a more robust process; and holding managers of CMCs personally accountable for the actions of their businesses.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-01-27.

To ask Her Majesty’s Government how many regulation-making powers are contained in the Trade Union Bill.

Baroness Neville-Rolfe

The Trade Union Bill contains 12 regulation making powers. Details are set out in the Delegated Powers memorandum, updated ahead of introductions in to this House in November 2015. A summary is attached.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-03.

To ask Her Majesty’s Government whether they support annual executive pay votes by shareholders, and whether they intend to legislate to stop three-year votes on that issue.

Baroness Neville-Rolfe

It has not proved possible to respond to this question in the time available before Prorogation. Ministers will correspond directly with the noble Lord.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-24.

To ask Her Majesty’s Government what steps they are taking to encourage better customer service in insurance companies that allow for consumers to make free claims.

Lord O’Neill of Gatley

The Government is determined that insurers should treat customers fairly and firms are required to do so under the Financial Conduct Authority (FCA) rules.

The FCA’s Insurance Conduct of Business Sourcebook (ICOBS) sets the conduct standards required of insurance firms in relation to their business which aim to ensure consumers are treated fairly. This includes provisions relating to the handling of claims by insurers. ICOBS states that insurers must handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.

To ask Her Majesty’s Government what assessment they have made of the Executive Remuneration Working Group’s conclusions that executive pay is not fit for purpose” and that extensive reform is needed to allay “widespread scepticism and [the] loss of public confidence”.”

Baroness Neville-Rolfe

The Government has noted the views set out in the interim report of the Executive Remuneration Working Group.

Government reforms introduced in 2013 provide a significantly more transparent and robust governance framework for executive pay. The reforms give shareholders a binding vote at least every three years on company pay policies and an annual vote on the remuneration report which sets out exactly what directors have been paid. The annual vote is advisory but if the shareholders vote down the report, the company has to bring a revised pay policy to the next Annual General Meeting.

These reforms give shareholders effective powers to challenge excessive executive pay and to hold boards to account on pay policies and it is now for investors and companies to engage constructively to ensure that pay policies are fit for purpose and that they align the interests of executives, shareholders and companies.

Evidence from the current round of Annual General Meetings is that the reforms are having an impact and that shareholders are increasingly willing to use these powers where they are dissatisfied. BP and Smith and Nephew’s shareholders, for example, voted against their companies’ remuneration reports and the shareholders of Weir Group voted against that company’s remuneration policy in a binding vote. There have been significant shareholder votes against the remuneration reports at a number of other companies.

The Government has no current plans for further legislation or regulation, but expects to see companies liaising effectively with shareholders and adjusting pay policies where there is shareholder dissatisfaction.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-03.

To ask Her Majesty’s Government whether they will introduce a duty on shareholders of a significant size to address executive pay and company performance and increase those shareholders’ reporting requirements to pension trustees.

Baroness Neville-Rolfe

It has not proved possible to respond to this question in the time available before Prorogation. Ministers will correspond directly with the noble Lord.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-24.

To ask Her Majesty’s Government what assessment they have made of how many authorised claims management companies have been operating over the last five years.

Lord Faulks

The total number of authorised claims management companies (CMCs) operating over the last five years is as follows:

Year	2012	2013	2014	2015	2016
Total Authorised CMCs (at end March)	2998	2693	2097	1752	1610

This information is included in the CMR Annual Report, which can be found at gov.uk.

The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.

To ask Her Majesty’s Government what assessment they have made of the Executive Remuneration Working Group’s conclusions, and whether they have any plans either by statutory means or by Ministerial engagement to ensure greater transparency in relation to executive pay, clearer alignment of shareholder, company and executive interests, more accountability on the part of remuneration committees and greater engagement with and control by shareholders working through company boards.

Baroness Neville-Rolfe

The Government welcomes the interim conclusions of the Executive Remuneration Working Group. They represent a valuable source of ideas for ensuring more effective engagement between investors and directors and ensuring that executive pay policies are tailored to the needs of individual businesses. We also welcome the Working Group’s plans to consult interested stakeholders on practical ways of improving the current approach to executive pay. Departmental officials will be engaging with the roundtables that are being planned.

The Government made significant reforms to the governance of executive pay in 2013. Under these reforms, companies are required to put their pay policies to shareholders at least every three years. These policies have to include information on how each director will be paid and how that is linked to different levels of performance. This is subject to a binding vote. Companies also have to provide shareholders with an Annual Remuneration Report which reports the pay of each director in a single figure and again has to set out clearly how the actual payments relate to performance. Shareholders have an advisory vote on this report, but if they reject the report, the company must submit a revised pay policy to a binding vote at the next AGM.

These reforms give shareholders effective powers to challenge excessive pay and hold boards to account on executive pay policies. There is strong evidence from the current AGM season that shareholders are willing to use these powers, particularly where levels of pay are out of line with performance.

The Government has no current plans for further legislation or regulation, but is looking for firm evidence that companies are liaising effectively with shareholders and adjusting pay policies where there is shareholder dissatisfaction.