After Clause 53, insert the following new clause:
Officers not to take commissions for insurance business connected with the making of advances
§ (".—(1) Where—
- (a) a charge upon a policy of life assurance is given as additional security for an advance made by a building society, or
- (b) a building society makes an additional advance to enable payment to be made of a premium on a policy of insurance, or
- (c) any policy of insurance is taken out so as to comply with the terms on which an advance is made by a building society, whether by way of insuring the property given as security for the advance or otherwise,
§ (2) A person who pays, and a person who accepts, any gift, bonus, commission or bene- 886 fit which it is unlawful to receive under the foregoing subsection shall be liable on summary conviction to a fine not exceeding fifty pounds or to imprisonment for a term not exceeding six months.")
§ VISCOUNT HAILSHAM
My Lords, Amendment No. 50 is a new clause which makes it an offence for a director or officer of a building society to receive a commission in respect of an insurance policy which is effected through the society or issued by someone selected by the society in connection with an advance. It is not suggested that this practice is necessarily improper in all circumstances, but it is, I should have said, undoubtedly open to abuse, and it is better (at any rate, so it is thought) that the commission should accrue to the society rather than to individuals. My Lords, I beg to move that this House doth agree with the Commons in the said Amendment.
§ Moved, That this House doth agree with the Commons in the said Amendment.—(Viscount Hailsham.)
§ On Question, Motion agreed to.