HL Deb 31 January 1995 vol 560 cc107-8WA
Lord Clinton-Davis

asked Her Majesty's Government:

Whether they will identify those cases (or, in the event that they are unable to do so, the number of cases) in which the Department of Trade and Industry has appointed outside inspectors pursuant to the powers conferred by the Companies Act 1989 and the Financial Services Act 1986 respectively since 1st January 1992, stating in each case the length of time taken to complete the inquiries or to receive interim reports; and on how many occasions the report of the inspectors has led to prosecution, providing where appropriate the result of each such prosecution.

Earl Ferrers

There are no powers to appoint inspectors under the Companies Act 1989. Outside inspectors—i.e. non-departmental inspectors—have been appointed under Section 177 of the Financial Services Act 1986 in two cases since 1 January 1992; one in 1993 which is ongoing and one in 1994 which was completed in five months—no prosecution was commenced following receipt of the inspectors' report.

Lord Clinton-Davis

asked Her Majesty's Government:

On how many occasions the Department of Trade and Industry has decided not to appoint outside inspectors in cases which have been referred to it by the regulators acting pursuant to the powers conferred by the Financial Services Act 1986 or by the Stock Exchange between 1st January 1992 and the present time.

Earl Ferrers

Regulators including the London Stock Exchange refer on average 40 to 50 matters a year to the department's investigation division. Such references are not for the specific purpose of the appointment of outside inspectors and only one such appointment has resulted since 1 January 1992. In addition, 10 appointments of departmental inspectors have resulted.