§ Mr. FrenchTo ask the Chancellor of the Exchequer what have been the practical benefits to the private investor of the Financial Services Act 1986 and the regulatory regime which it created.
§ Mr. NelsonThe implementation of the Act in 1988 has brought significant benefits for the private investor. For example, firms carrying on investment business must be properly authorised. The regulators have taken action against firms not complying with their rules of conduct. A sizeable number have been found unfit to deal with private investors and prevented from doing so. A further example is the establishment of the investors compensation scheme, from which some 5,000 private investors have benefited to date.