§ Mr. Teddy Taylor
To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the operation of the Financial Services Act.
§ Mr. Maude
I have today made an order bringing into force sections 26 to 30 of the Financial Services Act on 1 January 1988. These provisions empower the Securities and Investments Board to receive and consider applications for direct authorisation. The order also commences certain related provisions concerned with fees (section 112), the Rehabilitation of Offenders Act (section 189 and schedule 14) and the penalties for making untrue or misleading statements in connection with an application.
The order also brings into force paragraphs 25(2) and (3) of schedule 1 on 18 January 1988. This will enable the board to issue certificates to the effect that a periodical publication is of the kind specified in paragraph 25(1) of the schedule, and hence outside the scope of the Act.
The order also brings into force most of paragraph 1 of schedule 15 from 27 February 1988. This paragraph makes certain transitional provisions. In particular, by virtue of sub-paragraph (5), any licence issued under section 3 of the Prevention of Fraud (Investments) Act which is in effect on 27 February shall, unless revoked under section 6 of that Act, continue in force until the day on which section 3 of the Financial Services Act comes into force.
I refer my hon. Friend also to the other replies I am making to him today.