§ Mr. Altonasked the Chancellor of the Exchequer what representations he has received concerning alleged corruption in City financial institutions; and if he will make a statement.
§ Mr. Ian StewartMy right hon. Friend has received a small number of letters from hon. Members and members of the public about the problem of fraud. Specific allegations of fraudulent behaviour or corruption have been passed to the police, who are the appropriate authority to deal with such matters.
The Government are taking determined action to ensure high standards of conduct in the financial sector. The Government's White Paper on banking supervision, and the Financial Services Bill, both published this week, are designed to provide for the first time a comprehensive system of financial supervision. We have also taken steps to improve the effectiveness of the prosecution of fraud.
The fraud investigations group was established in January this year to improve co-operation between the police, the Director of Public Prosecutions and the Department of Trade and Industry. My hon. and learned Friend the Solicitor-General yesterday announced additional resources for the fraud investigation group. We will give urgent attention to the recommendations of Lord Justice Roskill on what can be done to improve the law and procedure governing complex fraud trials, in order to increase the prospects of successful prosecution.