NASDIM (Hansard, 20 January 1989)

§ Mr. Nicholas Winterton
To ask the Chancellor of the Duchy of Lancaster how much time elapsed between the recognition of NASDIM membership on 31 December 1983 as an alternative to licensing by his Department and the establishment of the system in which his Department automatically contacted NASDIM when he received new applications for licensing under the terms of the financial services legislation.

§ Mr. Newton
[holding answer 16 January 1989]: My Department automatically contacted NASDIM over new applications for licences under the Prevention of Fraud (Investments) Act 1958 from 1 January 1985. In the intervening year there was regular although not automatic contact between my Department and NASDIM concerning licence applications.

§ Mr. Nicholas Winterton
To ask the Chancellor of the Duchy of Lancaster whether the application in 1984 by Barlow Clowes for licensing by his Department was received during that period when his Department did not as a matter of course seek to notify NASDIM of new applicants; and if he will make a statement.

§ Mr. Newton
[holding answer 16 January 1989]: The first papers concerning Barlow Clowes and Partners licence applications were received by my Department on 7 November 1984. Although at that date it was not the Department's practice automatically to consult NASDIM, the Department maintained contact with NASDIM on the progress of the application in the period following that date until licences were issued in October 1985.

§ Mr. Nicholas Winterton
To ask the Chancellor of the Duchy of Lancaster if he will make a statement explaining why his Department(a) went for a period without contacting NASDIM as a matter of course about new applications received for licences under the financial services legislation and (b) subsequently decided to establish a system of such contacts.

§ Mr. Newton
[holding answer 16 January 1989]: It was my Department's practice before 1 January 1985 to consult NASDIM when the circumstances of a particular case made it appear desirable to do so. On 1 January 1985, a procedure was adopted whereby NASDIM was consulted automatically. This was because NASDIM's membership and activities had expanded significantly during 1984.