asked the Secretary of State for Trade whether, in view of the current market situation, he will now impose restrictions on linked life assurance funds and property bonds, with particular reference to a requirement in valuation disclosure and a bar on future investment in development sites.
I shall be dealing with these matters in regulations to be made under Section 68 of the Insurance Companies Act 1974. Regulations are now being drafted to prescribe the assets to which life assurance policies, including property bonds, may be linked. Consultations have reached an advanced stage on the Department's proposals to regulate the manner and frequency of valuation of linked assets and on the appointment and qualifications of independent valuers. Whether or not particular investments in land meet the criteria would be a practical matter for the independent valuers. Finally proposals will shortly be put to the industry to require disclosure of information about linked life policies to policyholders.