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Pensions Bill

There are two answers to that. The Financial Services Authority or an equivalent EU supervisory body would regulate that body, which would be the case if reinsurance needed to be put in place as part of the risk management arrangements. The important distinction is the financial services compensation scheme. As I argued in my opening remarks, if there was a failure, that scheme would provide better benefits than would the PPF. The PPF is typically referred to as producing a 90 per cent benefit, which it does not. On average, it produces an 80 per cent benefit and often produces a 60 per cent benefit if a pension scheme has to go into the PPF. If a pension scheme had to go into the financial services compensation scheme, those PPF rules would not apply, so a higher degree of assurance would be provided through that compensation scheme than exists via the PPF.