§ 3.27 p.m.
The Earl of BuchanMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government how they intend to draw the balance of responsibility between self-regulatory organisations (SRO) and the Securities and Investment Board (SIB) now that they have conceded additional powers to the SIB to impose rules directly on the SRO without reference to a court compliance order procedure.
§ Lord Brabazon of TaraMy Lords, the Government have undertaken in another place to bring forward an amendment to the Financial Services Bill on this matter. The amendment would give the Secretary of State a power to direct a self-regulating organisation to alter its rules. The Secretary of State would be able to transfer this power to a designated agency. The power would be exercisable if the organisation's rules did not afford to investors protection at least equivalent to that afforded by rules made by the Secretary of State or designated agency, as appropriate. The precise form of this amendment is still under consideration in consultation with interested parties.
The Earl of BuchanMy Lords, I thank the noble Lord the Minister for his comprehensive Answer. I have, however, one other small question for him. I accept that the wording of this Question is exceedingly obscure and seems to owe a little to the late Beachcomber in the Daily Express—court compliance order procedure, SIBs and SROs—but there was a serious point behind the Question. It was, as it were, to put down a marker and to record now the great interest in the Bill currently in the other place. I therefore ask the noble Lord the Minister whether this was not a suitable and timely Question.
§ Lord Brabazon of TaraMy Lords, when the noble Earl says that it is attracting a great deal of interest in another place, he is of course quite right. In fact, it has not even finished its Committee stage there; it still has to go through the remaining stages. Perhaps I would not be out of order in suggesting that we in your Lordships' House should really wait and see what the Bill looks like when it arrives here at Second Reading, and I have no doubt that there will then be ample opportunity for all these points to be raised at that stage and subsequent stages.
§ Lord EzraMy Lords, bearing in mind that the noble Lord has drawn our attention to the fact that this Bill still has to go through many stages, would he nevertheless not agree that it would be desirable for us to aim at simplicity of organisation and have clearly defined rules for the various regulatory bodies and not have too many SROs?
§ Lord Brabazon of TaraMy Lords, with respect to the noble Lord, Lord Ezra, that is a matter which must 697 wait to be discussed in your Lordships' House when the Bill arrives here.