§ 2. Dr. Gilbertasked the Secretary of State for Trade and Industry if he will now seek to extend his powers to regulate the trading in stocks and shares by persons possessing inside information.
§ The Secretary of State for Trade and Industry and President of the Board of Trade (Mr. John Davies)The question of transactions in securities by persons with inside information is being studied in our review of company law.
§ Dr. GilbertI thank the right hon. Gentleman for that reply. In his review, will he take note of the fact that practices considered quite normal in the City of London could land people behind bars in Canada or the United States? Will he also take account of the recent recommendation of Justice that trading of this sort, not only in take-over situations but in everyday trading situations, should become a criminal offence?
§ Mr. DaviesI have very much under consideration the recommendations of Justice as well as those put forward by the Jenkins Committee some years ago. Provisions of the law are not wholly absent. There are, for instance, strong restrictions about dealings by directors of companies and their immediate families. But I appreciate that this matter exercises a good deal of public concern.