Tag: Lord Myners

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

To ask Her Majesty’s Government whether they have any plans to change the discount rate used to calculate the funding status of defined benefit pension schemes.

Lord Freud

The legislation governing the funding of defined benefit occupational pensions schemes is designed to be flexible, allowing the trustees or managers of these schemes to determine which method and assumptions are to be used in their schemes technical provisions. A number of factors come into play in scheme funding decisions and the Pensions Regulator provides useful guidance for trustees in its codes and supporting guidance and statements.

In determining the discount rate to be used, trustees must act prudently taking into account the yield on assets held by the scheme and / or the market redemption yields on Government bonds or other high-quality bonds.

There is no standard actuarial method and set of assumptions that must be used, however, should the Regulator have concerns about a funding plan it can intervene.

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 2015-02-10.

To ask Her Majesty’s Government whether they intend to ban United Kingdom banks from operating branches or subsidiaries in offshore tax havens; and whether United Kingdom regulators have any regulatory responsibility for those banks, their management or those in the United Kingdom who supervise such activities.

Lord Deighton

The Government does not impose restrictions on where UK banks can operate overseas. However, the UK has championed international tax transparency and through our G8 Presidency has driven the agreement and early implementation of the new global standard for automatic exchange of financial information for tax purposes. To date over 90 countries have committed to exchange such information on a multilateral basis. The UK also remains committed to ensuring that there are effective anti-avoidance rules in place to protect the UK corporation tax base.

This includes the introduction of new Controlled Foreign Company rules (effective from the beginning of 2013) which help to deter and prevent artificial diversion of profits from the UK.

It also includes supporting the G20-OECD Base Erosion and Profit Shifting project which is looking to address weaknesses in international tax rules which allow companies to avoid paying tax on their profits.

The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are the UK financial services regulators. The role of the FCA and PRA in regulating overseas branches and subsidiaries of UK banks is dependent on the specific circumstances of an individual case.

However, I have asked the FCA and the PRA to reply directly to the Noble Lord by letter to explain their role in this area. A copy of the letter will be placed in the Library of the House.

The below Parliamentary question was asked by Lord Myners on 2015-02-10.

To ask Her Majesty’s Government whether they have plans to consider setting the inflation target over an extended period, rather than a single year, in order to allow some catch-up for an extended period of under-target outcomes.

Lord Deighton

The Bank of England Act 1998 requires the Treasury to specify the objectives of the Monetary Policy Committee, namely what price stability is taken to consist of and the Government’s economic policy objective at least once every 12 months.

At Budget 2013, the Government reviewed the UK’s flexible inflation targeting monetary policy framework in international and historical context.

Based on the assessment set out in the review, the Government believes that low and stable medium-term inflation is a necessary, though not sufficient, pre-requisite for economic prosperity. As a result, in the remit for the independent Monetary Policy Committee of the Bank of England, the Government has retained a flexible inflation targeting framework and reaffirmed the 2 per cent Consumer Prices Index inflation target, which applies at all times. The Government updated the remit to clarify the trade-offs that are involved in setting monetary policy to meet a forward-looking inflation target.

The below Parliamentary question was asked by Lord Myners on 2015-02-12.

To ask Her Majesty’s Government whether they will publish or place in the Library of the House the agreement under which HM Revenue and Customs received from its French equivalent details of accounts allegedly held at HSBC Suisse; whether the terms of that agreement were negotiated by HM Revenue and Customs and advised to ministers; whether HM Revenue and Customs took legal advice and sought the views of ministers on the agreement before its signing; and under which legal jurisdiction the agreement is enforceable.

Lord Deighton

Information provided to HM Revenue & Customs (HMRC) by the French tax authorities in respect of individuals indicated to hold accounts at the Geneva branch of HSBC Suisse and understood to be UK residents was supplied to HMRC under the terms of both the Mutual Assistance Directive 77/799/EEC^[1] and the Double Taxation Convention in force between France and the United Kingdom at that time^[2].

The Mutual Assistance Directive had been in force since 23 December 1977. The Double Taxation Convention has been in force since 18 December 2009, replacing an earlier convention which had been in force since 1969.

Since their entry into force each of these agreements has been a matter of public record.

There was, therefore, no new agreement for the Board of HMRC to negotiate or consider in connection with the provision of the information by the French tax authorities.

HMRC does not share copies of Board papers and minutes with HM Treasury. However, senior HM Treasury officials are standing invitees to HMRC’s monthly Executive Committee meeting, which is the Department’s main executive forum and the primary place where decisions are taken with regards to setting and delivering strategy and improving performance in key areas, and as such they have routine access to relevant committee meeting papers and minutes.

Each HMRC Executive Committee member also takes responsibility for the management of activities within a specific portfolio, including enforcement and compliance and business or personal tax customer services; HM Treasury officials do not have access to this level of information which ‎contains operational compliance and taxpayer confidential information.

[1] http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31977L0799

[2] http://www.hmrc.gov.uk/taxtreaties/in-force/france.pdf

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The below Parliamentary question was asked by Lord Myners on 2015-02-12.

To ask Her Majesty’s Government whether the terms of the agreement between HM Revenue and Customs and its French equivalent relating to HSBC Suisse was shown to the Board of HM Revenue and Customs or discussed at a HM Revenue and Customs Board meeting.

Lord Deighton

Information provided to HM Revenue & Customs (HMRC) by the French tax authorities in respect of individuals indicated to hold accounts at the Geneva branch of HSBC Suisse and understood to be UK residents was supplied to HMRC under the terms of both the Mutual Assistance Directive 77/799/EEC^[1] and the Double Taxation Convention in force between France and the United Kingdom at that time^[2].

The Mutual Assistance Directive had been in force since 23 December 1977. The Double Taxation Convention has been in force since 18 December 2009, replacing an earlier convention which had been in force since 1969.

Since their entry into force each of these agreements has been a matter of public record.

There was, therefore, no new agreement for the Board of HMRC to negotiate or consider in connection with the provision of the information by the French tax authorities.

HMRC does not share copies of Board papers and minutes with HM Treasury. However, senior HM Treasury officials are standing invitees to HMRC’s monthly Executive Committee meeting, which is the Department’s main executive forum and the primary place where decisions are taken with regards to setting and delivering strategy and improving performance in key areas, and as such they have routine access to relevant committee meeting papers and minutes.

Each HMRC Executive Committee member also takes responsibility for the management of activities within a specific portfolio, including enforcement and compliance and business or personal tax customer services; HM Treasury officials do not have access to this level of information which ‎contains operational compliance and taxpayer confidential information.

[1] http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31977L0799

[2] http://www.hmrc.gov.uk/taxtreaties/in-force/france.pdf

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