§ Ms HoeyTo ask the Chancellor of the Exchequer (1) what assessment he has made of the likely effects of deregulating sports spread betting; [14795]
(2) what consultations he has had concerning the deregulation of sports spread betting; [14793]
(3) what alternative forms of regulations he has considered for the control of sports spread betting; [14796]
(4) what regulations exist to protect participants in spread betting and to ensure they are fully informed of the risks. [14794]
§ Mr. NelsonSpread bets are currently regulated as investments under the terms of the Financial Services Act 1986. Companies offering spread betting services are required to become authorised by joining one of the self-regulating organisations recognised under that Act. In doing so, they are subject to detailed conduct of business rules.
Spread betting based on matters such as the performance of financial indices will continue to be
284W
Debt written off prior to privatisation Year Privatisation Amount £ Type of Debt 1980–81 British Steel 509,308,359 National loans fund 1980–81 British Aerospace 60,000,000 Public dividend capital 1980–81 National Freight Corporation1 100,000,000 National loans fund 1980–81 British Airways 160,000,000 Public dividend capital 1982–83 British Transport Docks Board2 81,293,616 National loans fund 1984–85 British Telecommunications 2,789,865,772 National loans fund regulated in this way. But we intend that spread betting on matters such as sporting events and the weather should be excluded from the scope of the Act.
The financial services deregulation task force identified non-financial spread betting as an area for deregulation. My officials have consulted industry representatives, as well as the Securities and Investments Board and the Home Office. A draft amendment to exclude certain non-financial spread betting from the Financial Services Act is under preparation, and the Treasury will shortly be consulting with all interested parties on its terms.