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Clause 4 - Investment requirements for SaRA schemes

Rights of Savers Bill – in a Public Bill Committee at 3:00 pm on 14th December 2005.

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Question proposed, That the clause stand part of the Bill.

Photo of Malcolm Rifkind Malcolm Rifkind Conservative, Kensington and Chelsea

On what is otherwise a day of infamy, your position stands out as a beacon of parliamentary principle, Mr. Benton, which will be commended no doubt for the next 100 years.

The clause sets out the investment requirements for savings and retirement schemes. It is mainly an enabling clause. Subsection (2) provides that an account can be made up of investments set out in regulations by the Treasury. They are not specified under the Bill, but it is intended that the investments be similar to individual savings accounts, including cash, stocks, bonds and collective investments. I hope that the clause commends itself to the Committee.

Photo of Stephen Timms Stephen Timms The Minister of State, Department for Work and Pensions

I have just one question. I found it a little surprising that the Bill proposed that the approval of an account manager should be given to the pensions regulator. I should have thought that the Financial Services Authority would have been more appropriate. Why was the pensions regulator, in particular, proposed?

Photo of Malcolm Rifkind Malcolm Rifkind Conservative, Kensington and Chelsea

I do not have strong views about the matter. If the Minister tables an amendment to that effect on Report, I assure him that I shall   respond to it in a constructive fashion. We would have had time to look into the respective merits of the two approaches.

Question put, That the clause stand part of the Bill:—

The Committee divided: Ayes 6, Noes 5.

Division number 4 Nimrod Review — Statement — Clause 4 - Investment requirements for SaRA schemes

Aye: 5 MPs

No: 4 MPs

Ayes: A-Z by last name

Nos: A-Z by last name

NOES

Question accordingly agreed to.

Clause 4 ordered to stand part of the Bill.