§ Mr. Nigel GriffithsTo ask the Secretary of State for Trade and Industry how many cases of suspected insider dealing were referred by the Stock Exchange to his Department in each year since 1979.
§ Mr. RedwoodInsider dealing did not become a criminal offence until 23 June 1980. Since then the number of cases of suspected insider dealing referred to the Department of Trade and Industry by the Stock Exchange each year is as follows:
Number 19801 7 1981 18 1982 23 1983 17 1984 12 1985 6 1986 14 1987 30 1988 25 19892 26 1 From 23 June 1980. 2 To date.
§ Mr. Nigel GriffithsTo ask the Secretary of State for Trade and Industry how many preliminary reports on suspected cases on insider dealing were sent by the Stock Exchange insider dealing unit in each month in 1988.
§ Mr. RedwoodThe number of reports on suspected cases of insider dealing sent by the Stock Exchange insider dealing group to the Department of Trade and Industry in each month in 1988 was as follows:
Number January 1 February 1 March 1 April 1 May 1 June 2 July 2 August 2 September 1 October 2 November 9 December 2
§ Mr. Nigel GriffithsTo ask the Secretary of State for Trade and Industry if he will make a statement on the progress of the European co-ordinating regulations on insider trading.
§ Mr. RedwoodThe EC Council of Ministers unanimously agreed a common position on the draft directive on co-ordinating regulations on insider dealing on 18 July 1989. This common position has now been516W considered by the European Parliament and the directive is likely to be adopted by the Council of Ministers on 13 November. Member states will be required to implement it by 1 June 1992.
On 13 September the United Kingdom became the first country to sign the Council of Europe convention on insider trading. Like the directive, the convention provides for co-operation between states that have ratified it but differs from the directive in not setting minimum standards for national regulations.
§ Mr. Nigel GriffithsTo ask the Secretary of State for Trade and Industry in what circumstances he would now reopen cases referred to him by the Stock Exchange since 1979.
§ Mr. RedwoodI assume that the hon. Member is referring to possible insider dealing offences. Insider dealing did not become an offence until June 1980.
All cases are considered on their merits. If significant new evidence of a possible offence came to light my right hon. Friend would be prepared to reconsider a case where it had earlier been decided that no further action was appropriate.
§ Mr. Nigel GriffithsTo ask the Secretary of State for Trade and Industry what is the Government's policy towards granting the Stock Exchange powers of prosecution for cases of insider dealing.
§ Mr. RedwoodClause 195 of the Companies Bill provides for the Secretary of State to consent to the bringing of prosecutions in respect of insider dealing offences by persons or bodies other than himself. It is intended to use this power to consent to such prosecutions by the International Stock Exchange in suitable cases.
§ Mr. Nigel GriffithsTo ask the Secretary of State for Trade and Industry what is the latest figure for the numbers employed in his Department to investigate cases of insider dealing.
§ Mr. RedwoodMost investigations into possible insider dealing offences are undertaken by inspectors appointed under section 177 of the Financial Services Act. There are currently 32 such inspectors, of whom one is an official of the Department. There is in my Department a unit of six staff, whose main task is to consider possible insider dealing cases for investigation by inspectors, to liaise with such inspectors and to follow up inspectors' reports. In addition, lawyers from solicitors branch give advice and conduct prosecutions as necessary. They are supported by professional investigation officers who are involved as needed.
§ Mr. Nigel GriffithsTo ask the Secretary of State for Trade and Industry what was the number of cases of suspected insider dealing where proceedings for prosecution were instituted by his Department in each year since 1979.
§ Mr. RedwoodInsider dealing did not become a criminal offence until 23 June 1980. Since then the number of cases of suspected insider dealing offences where proceedings for prosecutions were instituted by the Department of Trade and Industry in each year is as follows: 517W
Number 11980 0 1981 1 1982 1 1983 1 1984 0 1985 0 1986 2 1987 3 1988 3 21989 7 1 From 23 June 1980. 2 To date. Prosecutions for insider dealing offences have also been instituted by other prosecuting authorities.
§ Mr. Nigel GriffithsTo ask the Secretary of State for Trade and Industry how many cases of insider dealing referred by the Stock Exchange to his Department have been reopened since the passage of the Financial Services Act 1986.
§ Mr. RedwoodNone.