§ 3. Mr. Skinnerasked the Secretary of State for Trade what further action he is taking arising out of the publication of the London and Counties Securities Group Limited by his Department.
§ The Under-Secretary of State for Trade (Mr. Clinton Davis)The Companies (No. 2) Bill contains provisions which are relevant to this report, particularly those designed to strengthen the position of auditors. Other matters dealt with in the report will be considered as part of my general review of company law.
§ Mr. SkinnerDoes my hon. Friend agree that this rather sordid affair cannot finally be cleared up until one of the chief culprits—namely, Gerald Caplan—is rounded up so that he can be interviewed and asked to explain the actions not only of himself but of his colleagues and the other directors on the board at that time? Is it not worth noting, too, that at the present time, despite the rescue of the secondary banking system, we are once again seeing in the City columns of various newspapers the spawning of further secondary banking with the urging of people here to invest their money, in many cases overseas? Should not there be some legislation to stop this practice once and for all?
§ Mr. DavisThe prosecution of Mr. Caplan, or anyone else involved in this unhappy affair, is a matter for the Director of Public Prosecutions and my right hon. and learned Friend the Attorney-General and not for my Department.
The question of the supervision of secondary banking, to which I thought my 4 hon. Friend was referring, the inspector's comments and recommendations in this respect have been carefully noted and preparations for the amendment of the Protection of Depositors Account Regulations 1963 are in hand. There is a strong case for stricter regulation of this activity.