§ 15. Mr. Liddallasked the President of the Board of Trade what he is doing to ensure that those holders of sub-units in fixed trusts who may exercise the option to surrender their sub-units in exchange for shares in newly formed managed trusts will be refunded the initial loading costs charged to cover the full life of their sub-units, together with payment for their rights in the Stock Exchange commissions received by the trust managers as agents; and if he has yet no statutory powers to protect the public in respect of these optional conversions, will he consult the Stock Exchange committee and the banks and insurance companies who act as trustees for fixed trusts, with a view to legislation?
Mr. StanleyI understand that in all cases in which conversions of the type referred to by my hon. Friend have taken place, provision has been made for an equitable proportion of the initial service charges to be assigned to the new investment trust companies. As regards the second part of the question, there does not appear to he any sufficient ground for legislation on this matter.
§ Mr. LiddallIs the Minister not aware that this continued delay in bringing forward legislation for the control of fixed and transferred trusts is causing a great deal of adverse comment in the City?
Mr. StanleyI am not aware, as a matter of fact, of the adverse comment in the City. The question of legislation in regard to unit trusts is under consideration, but hon. Members will be aware 710 from the King's Speech that the Government's legislative programme is already heavy.