§ Mr. Roweasked the Chancellor of the Exchequer if he will make regulations under section 34 of the Banking Act 1979 to control advertisements for deposits; and if he will make a statement.
§ Mr. Ian StewartYes. Following the consultations which the Bank of England carried out with the Treasury's agreement last year, the Treasury is today laying regulations (SI 1985/220) which will contol advertisements issued in the United Kingdom for deposits to be made outside the United Kingdom or any other member state of the European Community.
The regulations will come into effect on 1 July 1985. The main provision of the regulations will require such advertisements to include a "health warning" stating where the deposit is to be made and drawing attention to the fact 567W that the deposit is not protected by the deposit protection scheme under the Banking Act 1979. The Treasury will on the same day repeal by order the Protection of Depositers Act 1963 and the Protection of Depositors (Northern Ireland) Act 1964 and will bring section 39 of the Banking Act 1979—which deals with fraudulent inducement to make deposits—into effect.