Tag: Lord Myners

The below Parliamentary question was asked by Lord Myners on 2016-03-22.

To ask Her Majesty’s Government why they set a five per cent exit charge for early closure of a lifetime ISA.

Lord O’Neill of Gatley

Whilst the Lifetime ISA is a product aimed at encouraging saving for the long term, the government understands that circumstances change so wants to ensure that people can access their own money if they need it whilst also keeping an incentive to leave funds invested for the long term or to help purchase a first home. The government proposes that savers can make withdrawals at any time for other purposes, but with the bonus element of the fund plus any interest or growth on it returned to the government, and a 5% charge applied.

The below Parliamentary question was asked by Lord Myners on 2016-04-19.

To ask Her Majesty’s Government what estimate they have made of the extent of the reduction in the capital-to-risk ratio in central clearing consequent upon the takeover of the London Stock Exchange by Deutsche Bourse, and whether they propose to reduce the extent of credit offsets between the two central clearing parties.

Lord O’Neill of Gatley

I refer the noble Lord to my written answers of 26 April (HL7583, HL7584, HL7585, and HL7586)

The below Parliamentary question was asked by Lord Myners on 2016-04-26.

To ask Her Majesty’s Government whether they will order an inquiry into actions taken by the trustees of the BHS pension schemes in agreeing revisions to funding rates and supporting the sale of the employer.

Baroness Altmann

The Pensions Regulator regulates work-based pension schemes, including trust-based schemes. In accordance with Parliament’s wishes, it has operational independence so it would be entirely inappropriate for Ministers to intervene in its decisions or on-going investigations.

The below Parliamentary question was asked by Lord Myners on 2016-05-23.

To ask Her Majesty’s Government whether they support Turkey joining the EU, and what pre-conditions they believe should attach to such admission.

Baroness Anelay of St Johns

The Government supports the process of Turkey’s EU accession, which remains the most effective means of encouraging reform, stability and democracy in Turkey. But as the Prime Minister, my Rt Hon. Friend the Member for Witney (Mr Cameron), has made it clear that the question of Turkey actually joining the EU is ‘not remotely on the cards’, indeed that he does not believe it will happen ‘for decades’. Every Member State has a veto, at every stage of the process.

Turkey would need to undergo substantial reform before we could consider Turkish accession to the EU, particularly in terms of rule of law, freedom of speech, and socio-economic convergence with EU standards. Furthermore, the Government will not agree to any further EU enlargement without new arrangements for transitional controls on freedom of movement. We do not want to take the risk, as we did in 2004, of very large movements of people after a new accession. Under the European Union Act 2011, any new Accession Treaty would require parliamentary approval by primary legislation before it could be ratified.

The below Parliamentary question was asked by Lord Myners on 2016-07-12.

To ask Her Majesty’s Government whether they are considering requiring the providers of pension annuities to increase the rate at which they calculate benefits.

Lord O’Neill of Gatley

Annuity rates are set by individual providers and can vary in line with market conditions. The amount of income an individual gets each year from an annuity depends on a variety of factors including how much they had in their pension pot when they bought the annuity, whether they are seeking a joint annuity, and their age, health and lifestyle.

As a result of this government’s pensions reforms, individuals aged 55 and over with a defined contribution pension are now able to make their own choice about how to use their pension savings. The Government’s Pension Wise service provides free, impartial guidance to help people understand their options.

The below Parliamentary question was asked by Lord Myners on 2016-03-22.

To ask Her Majesty’s Government whether they will review the contribution of contingent convertible bonds to financial stability and, in particular, the risk of adverse feedback loops and the contribution thereto of the absence of standardised terms.

Lord O’Neill of Gatley

In December 2015, the Bank of England set out its medium-term capital framework for UK banks and building societies. The Bank’s analysis suggested that the optimal risk-based going-concern capital requirement for the system as a whole is between 10% and 14% of risk weighted assets.

The majority of this capital is made up of the highest quality, common equity tier 1 (CET1) capital. However, a small part (up to 1.5 percentage points) can be made up of additional tier 1 (AT1) capital, such as contingent convertible bonds.

The Financial Policy Committee confirmed that only ‘high-trigger’ AT1 instruments would count towards a bank’s AT1 capital in respect of non-risk-based leverage ratio requirements.

This capital framework ensures that the UK’s banks and building societies are able to absorb losses and thereby reduce the risks to the stability of the UK financial system.

The below Parliamentary question was asked by Lord Myners on 2016-04-19.

To ask Her Majesty’s Government whether the new unnamed holding company to be created by the takeover of the London Stock Exchange by Deutsche Bourse will be regulated by the Financial Conduct Authority.

Lord O’Neill of Gatley

I refer the noble Lord to my written answers of 26 April (HL7583, HL7584, HL7585, and HL7586)

The below Parliamentary question was asked by Lord Myners on 2016-04-26.

To ask Her Majesty’s Government, further to the Statement by the Business Minister, Anna Soubry, on 25 April (HC Deb, col 1174), what assistance they plan to offer BHS or Retail Acquisitions.

Baroness Neville-Rolfe

Workers and their families will be worried by the news that BHS has been placed in the hands of administrators. The Administrator must secure the best possible result for the business, starting with rescuing it if possible as a going concern. If this does not prove possible, then we stand ready to help those affected, including through Jobcentre Plus’ Rapid Response Service, to help people move into new jobs as quickly as possible.

The below Parliamentary question was asked by Lord Myners on 2016-05-23.

To ask Her Majesty’s Government whether they or the Financial Conduct Authority have commenced reviewing the regulatory conditions to be applied to the takeover of the London Stock Exchange by Deutsche Bourse, and whether that takeover can proceed without regulatory approval.

Lord O’Neill of Gatley

I refer the noble Lord to my written answer of 26 April (HL7583, HL7584, HL7585, and HL7586), and to the investor relations section of the London Stock Exchange Group website, which contains information about the proposed merger, including on the required regulatory approvals.

The timings of the regulatory notifications are a matter for the companies acting in accordance with the relevant legislation.

The below Parliamentary question was asked by Lord Myners on 2016-07-18.

To ask Her Majesty’s Government what discussions they have had with the Pensions Regulator about the length of time it will require to report on the BHS pension scheme; and whether they plan to communicate that information to fund managers.

Lord Freud

The right approach is to allow the Pensions Regulator to get on with its investigations into the use of its anti-avoidance powers. There is a clear legal process that must be followed and this can sometimes take a considerable amount of time. The Pensions Regulator’s Chief Executive has given a commitment that it will have made significant progress by the end of 2016. It has said that when it becomes appropriate to do so it will consider publishing a report of the case under Section 89 of the Pensions Act 2004. The Regulator is independent and Ministers cannot become involved in its decisions on whether or not to exercise its powers or seek to influence its investigations in any way.