§ Lord ParryMy 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 whether they are satisfied that the Financial Services Act 1986 will promote open authorisation decisions by regulatory bodies.
§ Lord BeaverbrookMy Lords, I have nothing to add to the Answer given on 6th November to the noble Lord's identical Question.
§ Lord ParryMy Lords, the House will know that I am grateful to the young Minister for his full and clear response. However, in view of the welcome provision in the Act, which gives SROs the right to establish independent complaints schemes, and of the Minister's confirmation in another place that applicants for authorisation could have recourse to such schemes if they wished to complain about the practices of the SRO, will not the noble Lord express the hope—and note the hope expressed by Members of both Houses—that such schemes will be established and invested with real powers? Moreover, will he press SROs speedily to take up the opportunity offered by the Act?
§ Lord BeaverbrookMy Lords, under the Act, the SROs are required to act fairly and reasonably in recognising businesses applying for authorisation. As a self-regulating organisation, it is the criterion of recognition that its rules and practices about admitting or expelling members must be fair and reasonable and there must be adequate provision for appeals.
§ Lord Williams of ElvelMy Lords, in the light of yesterday's reported request by a major investment bank for a judicial review of the decision by the Takeover Panel, will the noble Lord confirm that the operation of what he describes as "fair and reasonable" rules and practices will also be open to judicial review?
§ Lord BeaverbrookMy Lords, I am not able today to confirm whether they will be open to judicial review, but your Lordships' House passed the Act which provides for many functions to be transferred to a designated agency composed of experienced practitioners and independent lay members. It would be for the agency to assess the organisation's rule books and to decide whether the rules on admission are fair and reasonable.
§ Lord HackingMy Lords, will the Minister accept that this is a problem that needs tackling, and tackling soon? Accepting that proposition, will the Minister also accept that at present potential SROs are not only formulating their rules but are accepting members into their company? Is this not the matter which directs itself to the problem of authorisation?
§ Lord BeaverbrookYes, my Lords