§ 16. Mr. CousinsTo ask the President of the Board of Trade if she will reconsider the case for an independent inquiry into the past conduct of the committee and council of Lloyd's of London. [10041]
§ Mr. Ian McCartneyMy hon. Friend has already received a full response on the subject from my hon. Friend the Minister for Small Firms, Trade and Industry, and I have nothing to add to that reply. As for the future, however, the Government will be considering further the regulatory arrangements for Lloyd's in the context of the wider changes to financial services regulation that were announced by my right hon. Friend the Chancellor of the Exchequer, on 20 May 1997, Official Report, columns 507–11, and the changes to insurance regulation that were announced by my right hon. Friend the President of the Board of Trade on 23 July 1997, Official Report, column 676.
§ Mr. CousinsI welcome the Minister's comments on bringing Lloyd's under a single powerful regulator and enforcer of regulations in the City of London, because such action will strengthen the City's case in world markets. However, serious questions about the past remain. Have Ministers received recent new evidence about the date on which the true extent of Lloyd's long-term liabilities arising out of American contracts became known to some members of the council and committee of Lloyd's and about what they did with that information? Has that evidence dealing with serious matters reached the Government? Are Ministers considering an inquiry under the Financial Services Act 1986? Have they referred the new evidence to the Serious Fraud Office?
§ Mr. McCartneyWhen I receive from my hon. Friend or from anyone else any new evidence of fraud or alleged fraud, the Department and I shall pass it to the Serious Fraud Office. We expect any such evidence to be passed to the Serious Fraud Office for consideration and appropriate action.