The press release issued by HM Treasury on 7 April 1998.

Measures to ensure customers receive adequate protection when they take out a mortgage were announced today by the Economic Secretary, Helen Liddell.

The Treasury will have the power to extend the Financial Services Authority’s (FSA) regulatory responsibilities to include mortgages as part of the proposed regulatory reform bill. It could, if necessary, be used if the Code fails to give sufficient protection. The Council for Mortgage Lenders (CML) voluntary Code will be kept under regular review to ensure it is providing adequate protection for customers.

The Code will be reviewed against a number of factors,including:

the extent to which the Code secures good quality advice for prospective borrowers; how well the Code provides remedies for borrowers’ legitimate grievances.

There will be a formal review in 1999 and,depending on the outcome, an interim one in 2000 and further formal reviews every two years after that. The review will also include regular reports from the CML, independent intelligence and, an on-going consultation process with CML about how the Code is working.

Announcing the measure, Helen Liddell said:

“Taking out a mortgage is probably the most significant transaction most ordinary people undertake in their lifetime. I want to ensure that they receive the protection they are entitled to expect.

“I am aware that the CML and its members are making a serious investment in the success of the Mortgage Code and we will allow the Code a fair trial. However, if the Code fails to provide adequate protection for consumers we will not hesitate to use the reserve power in the regulatory reform bill and give the Financial Services Authority statutory power to regulate mortgages.”

The Minister also announced that it would be possible for the Treasury to extend the scope of regulation to retail banking and non-life insurance (this includes a wide range of products from motor insurance to health insurance). These areas, too, will be kept under review. However, regulation would not be extended without consultation, including an appraisal of the costs and benefits.

Mrs Liddell said:

“We have no plans at present to extend the scope of regulation into these areas but standards of conduct in these markets and the risks faced by consumers will be kept under review.

“As we are now in the process of setting up a regulatory framework which will see us well into the next century, we want to ensure that we have relevant powers available to us if action is required.”

The Minister also took the opportunity of welcoming the FSA’s consultation document on the design of their handbook. She said:

“The FSA’s main aim is to ensure that their handbook is accessible and easy to use by managers and advisors in the financial services industry. Self discipline is the key to good regulation. This consultation gives the industry the opportunity to shape the way regulation will work in future. It is in the industry’s hands to get involved in the process.”

Mrs Liddell announced that the proposed legislation would give the FSA a flexible rule-making power to impose requirements anywhere along the spectrum from broad principles to detailed rules. These must be consistent with the imperative for different approaches to wholesale and retail business.

The Minister said:

“Of course we have to distinguish between the retail and wholesale ends of the markets. At the retail end, where businesses have better information, customers must have proper protection. But at the wholesale end we must ensure the regulatory regime is light and flexible enough to give the industry the opportunity to develop and innovate and compete in global markets.”

A consultation document on the future of the Insurance Brokers Registration Council (IBRC) was also issued today. The Government is reviewing the system of registration and professional governance of insurance brokers, and wishes to consult with the industry and others concerned whether it would be advisable to remove its present statutory basis. Such a change would involve repealing the Insurance Brokers

(Registration) Act 1977 as part of the regulatory reform bill. Insurance intermediaries who arrange life insurance business, whether described as ‘insurance brokers’ or by any other title, will be subject to authorisation by the FSA.

Mrs Liddell said:

“We have not yet adopted a final view on the way ahead and welcome views of brokers, insurers and consumer representatives.

“We will continue to look to this sector to provide competitive and high quality services for clients.We are also looking wider, to the insurance industry as a whole, to work with its customers in maintaining confidence in the ways non-life insurance is distributed.”

The press release issued by HM Treasury on 18 December 2022.

• Five leading industry experts appointed to accelerate development and deployment of emerging tech in the UK, as Chancellor sets out vision to create the Silicon Valleys of the 21st century.
• Experts will work hand-in-hand with industry and Sir Patrick Vallance to advise on new rules that use the UK’s regulatory freedom to promote innovation.
• Second in a series of big growth announcements, following the Edinburgh Reforms of financial service regulation announced last week.

The Chancellor and Business Secretary have laid out plans for a series of exciting growth announcements across 2023 in five high potential sectors – digital technology, green industries, life sciences, advanced manufacturing and the creative industries – using the UK’s regulatory freedom outside the EU to pursue an ambitious vision to create the 21st century’s Silicon Valleys in the UK.

As set out at the Autumn Statement, the Government Chief Scientific Adviser and National Technology Adviser, Sir Patrick Vallance, will review existing rules and help develop a pro-innovation regulatory approach that allows the UK to fulfil its ambition to become a science superpower and world leader in key growth sectors such as digital technology and life sciences.

The UK is one of the best places in the world to invest, with over £10 billion committed to projects in 2021. However, with other countries also rapidly reforming their rules, anticipating how the landscape for emerging technologies will change is becoming an increasingly important source of competitive advantage in the global economy and could help drive up living standards, such as breakthroughs in medical research that put the UK at the front of the queue for new treatments.

The aim of the review is to establish the UK as the best regulated economy in the world in key growth sectors, ensuring that industry and investors have the certainty then need to drive innovation, investment and growth through anticipating new developments in emerging technologies. Quantum technologies for example, though in early stages of development, have the potential to improve vaccine and drug discovery and development, advanced navigation technologies, and enhanced sensors helping us to deliver better and more targeted services in the UK.

Five leading experts have been appointed to support Sir Patrick Vallance, working hand-in-hand with industry to identify any barriers to innovation and getting emerging technologies to market.

Matt Clifford, Chair of the new Advanced Research and Invention Agency (ARIA), and Priya Lakhani OBE, a member of the AI Council, have been appointed to support work to harness new digital technology such as artificial intelligence.

Sir John Bell, who is on Genomics England’s board of directors, and Camilla Fleetcroft, Eclevar UK’s Vice-President of Clinical and Regulatory Affairs, will work on cultivating the life sciences sector and help drive the next generation of discoveries, such as delivering genomics-enabled clinical trials.

Jane Toogood, Chief Executive of Catalyst Technologies at Johnson Matthey, will take forward work on building green industries like hydrogen and battery development in the UK.

Chancellor of the Exchequer Jeremy Hunt said:

“I want British firms to lead the world in turning fantastic science into new products and services – and we need to make sure government is doing everything we can to encourage innovation and competition.

“We have already set out how we will back our formidable financial services sector to unlock private investment in new industries, and we will show the same ambition in other high-growth sectors to ensure that future Silicon Valleys are based here in the UK.

“The countries that secure leadership in new technologies will lead the world, enjoying unparalleled growth, security and prosperity for decades to come – and it is our job to ensure the UK is able to fully reap the rewards.

“Sir Patrick and his team will be critical as we harness every tool at our disposal to create the industries and jobs of the future, which will deliver long-lasting benefits for local communities across the UK.”

The Chancellor has already set out plans to repeal and replace hundreds of pages of burdensome EU retained laws through the ‘Edinburgh Reforms’, which will establish a less costly and more responsive regulatory framework for the financial services sector. This includes a commitment to make substantial legislative progress over the course of 2023 on repealing and replacing EU-era Solvency II – the rules governing insurers balance sheets which is expected to unlock over £100 billion of private investment for productive assets such as UK infrastructure.

Business Secretary Grant Shapps added:

“Economic growth and raising productivity is critical if we are to improve the standards of living for all Brits. One of the most sure-fire ways to deliver both is betting big on innovation, which is exactly what we intend to do.

“Backed by this fierce new team of advisers, Sir Patrick Vallance will lead the charge alongside industry to supercharge growth in some of the world’s most exciting growing technologies, turning the UK’s natural strengths into pillars for long-term growth.”

By creating markets and promoting and protecting competition, regulation plays an important role in enabling new entry and disruption and fostering incentives for innovation. For example, thanks to the government’s Contracts for Difference scheme, the UK is bringing forward over 26GW of new renewable energy, while driving competition and innovation which has pushed down the cost of offshore wind by 70% in seven years.

The press release issued by HM Treasury on 3 April 1998.

David Simon, joint DTI and Treasury Minister working with business to accelerate preparations for the euro launch, said today:

“British business must be ready for the opportunities and challenges of the introduction of the single currency on 1 January 1999.”

Attending the first of three regional breakfast meetings with local business leaders focusing on euro preparations, he continued:

“The launch of the euro is now less than nine months away. It will have a fundamental impact on the European business  environment.  Even though the UK is not joining next year, British business must be ready to seize the opportunities and prepare for the challenges that the euro will bring.

“Preparation is the key to success. The Government is committed to helping business to compete effectively in a market where many firms will be using the euro from January 1999.

“These discussions will enable me to listen first hand to the views of business people on what they are doing to prepare for the euro, and what the Government can do to help.”

David Simon was speaking in Bristol at the first of threebreakfast meetings with business leaders.  Other meetings will be held in Belfast on 9 April and Manchester on 23 April.

Chancellor of the Exchequer Gordon Brown said last October that the Government was committed to stepping up work on what business should do to prepare for the euro launch in 1999.  These meetings are an important part of that process.

President of the Board of Trade Margaret Beckett will chair a regional seminar on 5 May in Birmingham.  Further seminars are planned for Wales and Scotland.  These seminars are another opportunity for government to hear directly from business what preparations are underway and what more needs to be done.

The press release issued by HM Treasury on 2 April 1998.

UK OFFICIAL HOLDINGS OF FOREIGN CURRENCY AND GOLD: MARCH 1998

Part I: UK Government Reserves

The overall level of the UK Government’s spot reserves fell by $6 million in March, bringing the end-March total to $36,527 million (21,814 million Pounds) compared with $36,533 million (22,199 million Pounds) at the end of February.

The underlying change in the reserves was a decrease of $1 million.

The underlying change excludes factors that are included in the overall change.  In March:

there were repayments of $6 million of public-sector borrowing for which the Government has provided an exchange-rate guarantee under the Exchange Cover Scheme (ECS); and

receipts from Government ECU Treasury bills issued exceeded repayment on those maturing by $1 million.

	$ million
end-March reserves	36,527
less
end-February reserves	36,533
OVERALL CHANGE	-6
less adjustments	5
UNDERLYING CHANGE	-1

After the annual revaluation, the reserves stood at $34,219 million (20,435 million Pounds).

Part II: Bank of England Holdings of Foreign Currency and Gold

The level of the Bank of England’s spot holdings of foreign currency and gold was $2,961 million (1,768 million Pounds ) at end-March compared with $6,660 million (4,047 million Pounds) at the end of February.

	$ million
end-March holdings	2,961
less
end-February holdings	6,660
OVERALL CHANGE	-3,699

The change in the Bank’s holdings includes changes in foreign-currency and gold deposits placed with the Bank by overseas central banks and other customers and the change in valuation over the month.

The change also includes a decrease of $3,729 million in the Bank’s spot holdings due to the net effect of foreign-exchange swaps conducted in the first quarter of 1998 in the course of the Bank’s money-market operations.  These foreign-exchange swaps were
undertaken as a supplement to the Bank’s usual money-market techniques to provide sterling liquidity to the market.  The operations are purely technical in nature and have no monetary-policy significance; they are likely to be used from time to time in the future, depending on market conditions.

The press release issued by HM Treasury on 21 May 1998.

The Treasury is seeking applicants for a number of non-executive Board members for the Financial Services Authority. Advertisements will appear in the national, regional and trade press in the next week.

Chief Secretary to the Treasury Alastair Darling said:

“These are important appointments to a new and trailblazing organisation. Successful candidates will play a major role in the development of the Financial Services Authority and of the regulatory system. We are looking for applicants with flair and a keenness to design a regulatory system to further enhance Britain’s reputation as the foremost financial centre in the world expertise. Appointments will be made in accordance with Nolan Committee procedures.”

The press release issued by HM Treasury on 21 May 1998.

Further progress has been made in clearing up pensions mis- selling according to figures published today by Economic Secretary Helen Liddell. The Minister also published a graph showing a dramatic improvement in the pension review’s rate of progress since this time last year.

In her statement in the House of Commons on 18 November, Mrs Liddell said that she would remove from this list the name of any firm which achieved its target for resolving priority cases. Several firms now appear to be close to meeting their targets and, if PIA inspections confirm these initial reports, their names will be removed from the list.

The monthly figures of the 41 firms show:

• only 1 firm has resolved less than 25% of its cases;
• 5 firms have resolved less than half their cases;
• 17 firms have resolved over 75% of cases.

Mrs Liddell warned all firms that they must not rest on their laurels once redress had been agreed. Firms must ensure that no loose ends are left untied.

The Minister said:

“The regulators will continue to monitor firms, even after their targets have been met, to ensure that they follow through on offers of redress in a timely manner and establish the arrangements necessary to honour guarantees. I am asking the regulators to keep me informed.”

The press release issued by HM Treasury on 19 May 1998.

“The Government is committed to helping business adapt to meet the opportunities and challenges that the single currency will bring” announced Economic Secretary Helen Liddell, speaking at the European Parliament, as she published the latest Government advice to business.

Outlining the Government’s preparations for the single currency to the Economic and Monetary Affairs Committee of the European Parliament, Helen Liddell said:

“The impact of the launch of the single currency on the private and public sector in the UK will be profound, even though the UK is not joining on 1 January 1999.

“Today we have published a booklet – EMU: Steps for 1999 – which sets out what the Government is doing to prepare. It is a response to the key recommendations that arose form our consultations with business and the public sector.

“The Government is providing information about the euro to help business prepare. We are providing facilities for businesses using the euro. We are monitoring the use of the euro so that we have the flexibility to react to a changing business environment. And we have signalled the Government’s own commitment to preparations by nominating a Minister in each government department with responsibility for euro preparations.

“This provides a springboard for the period of intense preparation that lies ahead. It provides the groundwork for the Chancellor’s Standing Committee to build upon when it meets to consider future steps on Wednesday.”

The press release issued by HM Treasury on 18 May 1998.

Economic Secretary Helen Liddell today invited financial services firms to help put customers first with a new class of savings which will be simple, clear and fair. She was launching a Treasury consultation paper Making Saving Easy. It suggests voluntary standards for individual savings accounts (ISAs) to give ordinary people a straightforward way of spotting deals worth having.

Stressing the importance of giving the public a fair deal, Mrs Liddell said:

“Today we are opening a debate about how financial firms can help their customers. People want everyday good value, and we want to help them find it without hassle. We want to put the customer first.

“That means working in partnership with the industry to develop a range of no nonsense savings which are simple, clear and fair. Savings like that will be easy for people to understand and so help them avoid making poor choices.”

Making Saving Easy suggests voluntary standards which home in on three features: reasonable Cost, easy Access and decent Terms. These define the CAT standards, picking up the initials to remind people of what they are.

There will be three sets of CAT standards, one for each kind of ISA. That is, one for the cash (or deposit) ISA, one for the insurance ISA and one for the stocks and shares ISA. Once people have decided what kind of saving they want, they can have confidence that savings plans that meet the CAT standards should be a reasonable deal.

The CAT standard is not a kitemark. The Government is not giving certain products a seal of approval, still less a guarantee. What the CAT standards do offer is a simple way of judging whether savings offer decent value.

Mrs Liddell added:

“The great thing about the CAT standards is that they will take away the worry about the small print. Savers whose ISAs meet the CAT standard will not face nasty surprises or awkward catches. They can expect something very old fashioned yet very up to date – decent value.

“Best of all, the CAT standards should mean that there is more competition in the market for people with small amounts to put away. Too often they have to settle for poor value and limited choice. It is time ordinary savers were better looked after”.

There will be no compulsion for every ISA to meet the CAT standards. ISAs that do not may be good value. But savers will generally want to make sure that they are getting something extra from savings which are not CAT standard.

It will be easy to tell whether a savings vehicle meets the CAT standard because its advertising will say whether it does or does not.

The press release issued on 15 May 1998.

G7 Heads today discussed and endorsed the attached report prepared by their Finance Ministers on Strengthening the Architecture of the Global Financial System.

The Asian financial crisis has revealed the need to address potential weaknesses and vulnerabilities in the global financial system. In particular, G7 Heads are conscious of the serious human and social consequences of such crises when they occur.

The report sets out proposals in five key areas, to reduce the risks of crises recurring in future and to improve our techniques for responding to crises when they do occur:

i) increasing transparency

ii) helping countries prepare for integration into the global economy and for free capital flows.

iii) strengthening national financial systems

iv) ensuring that the private sector takes responsibility for its lending decisions.

v) enhancing further the role of the International Financial Institutions and cooperation between them

The press release issued by HM Treasury on 14 May 1998.

Bridging Britain’s productivity gap is the next big national challenge. This was the message today from the Chancellor Gordon Brown and the President of the Board of Trade, Margaret Beckett, as they launched a joint programme of work beginning with a seminar held today at No 11 Downing Street. This will inform the forthcoming Competitiveness White Paper and represents a first step towards the next Budget.

The Chancellor said,

“Today, Margaret Beckett and I want to set down a challenge to business, to shareholders, to Government and to employees – the challenge of working together to bridge the gap in productivity between Britain and its main competitors.

“Britain’s inherited underperformance represents not only a challenge but an opportunity. We have the chance, by working together, to raise our game, to modernise and to secure the higher productivity on which higher growth, employment and living standards depends.

“To achieve this we need a new national economic purpose. And first we need to develop a clear shared understanding of the nature of the productivity gap and of what is needed to close it. This will be a key theme of our policy thinking in the coming months and I will consider seriously proposals emerging from this work in the run-up to the next Budget.”

Mrs Beckett said,

“The McKinsey work echoes the emerging conclusions of my own Competitiveness UK consultation process.

“From investment to management decisions, and from the competition framework to training, both Government and companies have a role to play in boosting UK productivity.

“The Chancellor and I want to take this opportunity to hear your views on the most effective way of progressing our partnership with business, building on best practice to close the productivity gap.”

Independent analysis by McKinsey, the highly respected management consultants, shows that UK productivity lags some 40 per cent behind the US and by at least 20 per cent behind (west) Germany. This large productivity gap with our main competitors goes to the heart of Britain’s legacy of economic underperformance.

The Chancellor and the President today launched a programme of seminars with leading business people and others which will continue over the summer and autumn. These are intended to engage a broad range of interests and to provoke a wide- ranging debate, as well as to inform the government policy- making process.