§ Mr. Maxwell-Hyslop
To ask the Chancellor of the Duchy of Lancaster whether he will request Sir Kenneth Berrill of the Securities and Investments Board to reply forthwith to the letter dated 25 September from Commander Colin Cochrane concerning representation of category A firms on the council of FIMBRA.
§ Mr. Maxwell-Hyslop
To ask the Chancellor of the Duchy of Lancaster whether he will publish in theOfficial Report the reply due from his Department to Commander 20W Colin Cochrane, representing category A firms, concerning the representation of category A firms on the FIMBRA council; and whether he will withhold approval via the Securities and Investments Board of FIMBRA until and unless category A firms are represented pro rata on the FIMBRA council.
§ Mr. Maude
Commander Cochrane wrote to my Department on 29 October and was sent a reply on 30 October. The reply pointed out that it was for the Securities and Investments Board and not the Secretary of State to determine whether, in its view, FIMBRA satisfies the requirements for recognition under the Financial Services Act, and that the commander's views on this matter should therefore be addressed to the board. The letter explained that the Secretary of State's role, now that the recognition function has been transferred, is to consider the competition aspects of FIMBRA's (and other aspirant SROs') rules; and that when he does so he will take into account their effect on all businesses in the relevant sector, small and large.
One of the requirements for recognition of a self-regulating organisation under the Financial Services Act is that the arrangements of the organisation with respect to the appointment, removal from office and functions of the persons responsible for making or enforcing the rules of the organisation must be such as to secure a proper balance (a) between the interests of the different members of the organisation; and (b) between the interests of the organisation or its members and the interests of the public. As noted above, it is for the Securities and Investments Board to satisfy itself whether this condition is met in particular cases.