asked the Secretary of State for Trade whether he is satisfied with the proposed reporting arrangements for insurance companies under the Insurance Companies Act 1974; and whether he will make a statement on the problems arising from the substantially different financial position which will be shown by insurance companies under returns required by the Act and those audited statements showing a true and fair view by normally accepted accounting standards.

Yes, and I am considering comments which the Department has received in reply to its consultative note. I am satisfied that the supervision of insurance companies requires the presentation of returns in a form different from the accounts required by the Companies Acts.