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Davies set for grilling on endowment crisis

The Treasury select committee is planning to grill FSA chairman Howard Davies over the endowment crisis when he makes the second of his bi-annual appearances before it later this autumn.

MPs of all three political parties say they will use Dav-ies&#39 appearance to ask questions about the endowment situation.

The MPs confirmed their intentions to quiz Davies after the FSA&#39s refusal last week to conduct a full review into the endowment crisis, claiming it was unnecessary.

The regulator believes the scale of the problem does not warrant a full review along the lines of the pension misselling scandal.

But Labour MP Jim Cousins, a member of the committee, says he wants to hear the FSA&#39s explanation for the endowment situation and fully intends to raise it with Davies.

Conservative MP Michael Fallon says the FSA is accountable to the committee. He says Davies&#39 regular appearance before the committee will be a good opportunity to estab-lish the scale of the endow-ment problem.

LibDem MP Edward Davey says he wants to find out more about the seriousness of any misselling and, if evidence emerges that it is extensive, he wants the committee to look at the issue in greater detail.

Davies, the FSA chairman and chief executive, must appear twice annually to tes-tify before the committee. He is scheduled to do so in late October or early November.

Cousins says: “The committee will deal with it and members of the committee will deal with it. This issue is not going to go away.”

Fallon says: “Clearly, there was a problem. What is imp-ortant is to see what the scale of the problem was. Endowments could very well become one of the issues the comm-ittee looks at.”

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