§ Mr. BeggsTo ask the Chancellor of the Duchy of Lancaster what actions he proposes to take to assist United Kingdom investors who have suffered losses through dealing with offshore firms.
§ Mr. Maude[holding answer 28 October 1988]: The Financial Services Act 1986 will provide considerable protections to investors in this position. Where the offshore business is not authorised under the Act and it carries on investment business here unlawfully, there are powers to obtain a restitution order from the courts where investors have suffered loss. A similar order may be sought if the business is authorised and investors suffer loss as a result of its misconduct. In addition, if the business is authorised, the investors' compensation scheme, established under the Act, may provide full or partial compensation for any loss suffered. A number of other provisions under the Act are also relevant. However, investors should recognise that investing with unauthorised overseas businesses is riskier than investing with authorised businesses; and that the provisions of the Act are not retrospective.