HC Deb 04 November 1993 vol 231 cc466-7W
Mr. Don Foster

To ask the Chancellor of the Exchequer (1) what information was sought by his Department from Companies house on the controlling interests of London and Bishopsgate International Management plc when the company applied for a principal's licence under the provisions of the Prevention of Fraud (Investments) Act 1958;

(2) what review he has made of the extent to which his Department undertook all the necessary checks to assure itself that the controlling interests and directors of London and Bishopsgate International Management plc were fit and proper persons in order to be granted a principal's licence.

Mr. Nelson

The usual checks carried out under the Prevention of Fraud (Investments) Act 1958 were made before a licence was issued.

Mr. Don Foster

To ask the Chancellor of the Exchequer (1) what information London and Bishopsgate International Investment Management plc provided to his Department in respect of its application for a principal's licence on(a) the names and addresses of all past and present shareholders who had held at any time individually more than 25 per cent. of the capital of the company, (b) the names of the beneficial owners of shares held by nominees and (c) where these names were corporations, the controlling interests in those corporations;

(2) what information London and Bishopsgate International Investment Management plc provided in its application for a principal's licence on any person not disclosed elsewhere in the application who had, or intended to have, any measure of control over the company's business;

(3) what reference was made to Mr. Robert Maxwell in London and Bishopsgate International Investment Management plc's application for a principal's licence.

Mr. Nelson

Under the Prevention of Fraud (Investments) Act 1958 a company applying for a principal's licence to carry on the business of dealing in securities was obliged to inform the Department of the names of all directors, controllers and managers of the company. The directors, controllers and managers of London and Bishopsgate International Management plc were notified as Andrew Smith, Kevin Maxwell and Larry Trachtenberg.

Mr. Don Foster

To ask the Chancellor of the Exchequer what checks his Department made with the Investment Management Regulatory Organisation that London and Bishopsgate International Investment Management plc had applied for membership of the SRO when his Department was considering the company's application for a principal's licence; and what information was exchanged between his Department and IMRO on the company and its controlling interests.

Mr. Nelson

The usual checks carried out under the Prevention of Fraud (Investments) Act 1958 were made before a licence was issued. Exchanges of information amount regulators are confidential.