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Treasury Select Committee (TSC) hearings – unclaimed assets within the financial system
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Contact: Rachel Le Brocq Date: 5 Jul 2007 |
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On the 5 June, the Director-General and Chairman of the BSA gave evidence to the TSC as part of its Inquiry into unclaimed assets within the financial system. Representatives from the BBA and the Unclaimed Assets Commission also gave evidence.
MPs questioned whether the proposed scheme could be successful on a voluntary basis. The BSA noted that The Banking Code Standards Board had a good record and expressed confidence that it would continue to operate in the same manner in the future. The BBA pointed out that there would be a statutory framework in place and argued that the Banking Code would ensure consistency in the future.
The Committee was also keen to see early action by the industry in reuniting lost account holders with their money.
A full, uncorrected oral transcript of the session can be viewed here
http://www.publications.parliament.uk/pa/cm200607/cmselect/cmtreasy/uc533-ii/uc53302.htm
On 19 June, Economic Secretary, Ed Balls MP (Lab/Co-op, Normanton) gave evidence to the TSC as part of the same Inquiry. He defended the decision not to include National Savings and Investments accounts in the proposed unclaimed assets scheme arguing that if unclaimed money in such accounts was transferred to the reclaim fund, there would be an adverse effect on the level of national debt.
John McFall MP (Lab/Co-op, West Dunbartonshire) also questioned whether the Treasury should enforce a scheme if self regulation failed. The Minister said that there was no evidence that the banks and building societies were 'dragging their feet'. They were working closely with the Government and were not reluctant to make it work, he added.
Michael Fallon MP (Con, Sevenoaks) went on to suggest that the Government was looking to use unclaimed assets to fund the social investment bank because lottery funding had been diverted to the Olympics. At no point had the Government made such an indication, Mr Balls countered. There should be two priorities, those of youth services and financial inclusion, he said.
The Minister also said that the Government was keen to ensure that building societies could continue to divert money to the community through local charities.
The full, uncorrected oral transcript of the session can be viewed here http://www.publications.parliament.uk/pa/cm200607/cmselect/cmtreasy/uc533-iii/uc53302.htm
The Committee is due to publish its report before Parliament rises in late July.
