§ Mr. Kenneth Carlisle
asked the Chancellor of the Exchequer whether he proposes to make regulations under section 34 of the Banking Act 1979 to regulate the issue, form and content of advertisements inviting the making of deposits; and if he will make a statement.
§ Mr. Ian Stewart
Yes. I have decided in principle to make regulations which would cover the issue in the United Kingdom of advertisements inviting deposits to be accepted outside the United Kingdom and other European Community countries.
The principal requirement would be that such advertisements should include a prominent statement that deposits are being accepted outside the United Kingdom and that deposits are not covered by any deposit protection arrangements in this country. The Bank of England will be issuing a consultative document early in the New Year which will give more details of this and of the other proposed provisions of the regulations.246W
The Treasury and the Bank of England will keep under review advertising practices in this country of institutions accepting deposits in the United Kingdom and in other Community countries. I would not hesitate if necessary to extend the regulations to cover such advertising.
Once I have taken account of any comments on the Bank of England's consultative document, the regulations will be made and laid before Parliament. I will make a further statement in due course.