HC Deb 18 July 1939 vol 350 c193
74. Sir J. Leech

asked the President of the Board of Trade whether, in view of the recent disclosures concerning the affairs of the British General Fixed Trusts, Limited, he will so frame the regulations under the Prevention of Fraud (Investments) Act that no unit trust will be recognised unless the escrow fund is adequate for the future service of the unit trust covered by the Act and is retained in the hands of the trustees of the trust?

Mr. Stanley

Under Section 16 of the Prevention of Fraud (Investments) Act, 1939, the Board of Trade would have to be satisfied, before declaring any unit trust scheme to be an authorised unit trust scheme, that the trust deed makes provision to the satisfaction of the Board for the matters specified in the Schedule to the Act, paragraph 4 of which provides for the establishment of a fund to be applied in defraying the expenses of administration of the trust and for regulating the application of that fund. The Board of Trade would consequently require to be satisfied that the service of the trust is safeguarded in the manner suggested by my hon. Friend.