§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what proposals he has for requiring a full audit trail in currency and commodity dealings as a protection against fraud and price manipulation.
§ Mr. NelsonInstitutions regulated by the Bank and under the Financial Services Act must have adequate systems to control the regulated aspects of their business, including an adequate audit trail. Where these controls are inadequate, the regulators will take appropriate action. They will also investigate any evidence of fraud or malpractice. I have no proposals to change the present regulatory arrangements, but will keep the matter under review.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what proposals he has for requiring the total separation of dealing and fund management in currency and commodity markets.
334W
§ Mr. NelsonSeparation in the functions of dealer and fund manager is not a regulatory requirement in these or other financial markets. The necessary safeguards to ensure that banks and financial institutions deal fairly for clients are matters for the Bank of England and the financial services regulators. Their judgment is that this can be achieved by having appropriate controls to satisfy regulatory requirements and by imposing a disclosure requirement, where appropriate. I have no proposals to change the present regulatory arrangements, but will keep the matter under review.