§ Lord Spensasked Her Majesty's Government:
In the event of a breach of Section 47(2) or of any other provision of the Financial Services Act 1986 by an issuing house in the offer for sale of British Telecommunications plc ordinary shares, whether investors could have a claim in law against the Government.
The Minister of State, Department! of Transport (The Earl of Caithness)No claim under the Financial Services Act would lie against HM Government. Arty claims under Section 47(2) which private investors might have would be against the responsible manager. The managers in the offer have all undertaken to Her Majesty's Government to comply with the Financial Services Act.
§ Lord Spensasked Her Majesty's Government:
Whether the declared policy of S. G. 'Warburg of rewarding City institutions which buy existing British Telecommunications plc ("BT") ordinary shares ahead of the issue, by allocating more of the new shares to those institutions than would otherwise have been the case, is consistent with Section 47(2) of the Financial Services Act 1986.
The Earl of CaithnessThe share allocation criteria were determined by HM Treasury, which has been advised that they fully comply with the provisions of the Financial Services Act 1986.
§ Lord Spensasked Her Majesty's Government:
Whether they will enforce the provisions of Section 47(2) of the Financial Services Act 1986, in respect of the current offer for sale of ordinary shares in British Telecommunications plc against any institution in breach of that section (including, if necessary against the issuing houses leading the public sale).
The Earl of CaithnessHer Majesty's Government will apply the same criteria in relation to any offences under Section 47(2) of the Financial Services Act 1986 which might be committed in respect of the current offer for sale of ordinary shares in BT as they would apply in any other case.