HC Deb 30 March 1995 vol 257 cc724-5W
Mr. David Nicholson

To ask the Chancellor of the Exchequer what representations he has received about progress by the regulators set up under the Financial Services Act 1986(a) to compensate people who were mis-sold pensions and other investment products and (b) to deter and punish those found guilty of deliberately mis-selling such products. [16608]

Mr. Nelson

I have received a number of such representations.

Mr. David Nicholson

To ask the Chancellor of the Exchequer what estimates he has of the number of people mis-sold pensions and other investment products since sections 44 and 47 of the Financial Services Act 1986 came into operation. [16657]

Mr. Nelson

As far as personal pensions transfers and opt-outs are concerned, I refer to the reply I gave on 25 October 1994 to the hon. Member for Southport (Mr. Banks),Official Report, column 508. For other investment products, some of the cases compensated by the investors compensation scheme and through the financial services regulators may have involved mis-selling. There are no central records which distinguish such cases.

Mr. David Nicholson

To ask the Chancellor of the Exchequer if his officials, and those of the regulators established under the Financial Services Act 1986, are instructed to inform those complaining about mis-selling of pensions and other investment products, that they have redress through the criminal law as well as through the regulatory system. [16568]

Mr. Nelson

No. Although investors can seek redress through the courts, the regulatory system under the Financial Services Act should provide redress in a more timely fashion and with less administrative cost for investors.

Mr. David Nicholson

To ask the Chancellor of the Exchequer how many(a) criminal investigations and (b) criminal prosecutions have been brought under section 47 of the Financial Services Act 1986. [16569]

Mr. Nelson

The Department of Trade and Industry, the Serious Fraud Office, the Crown Prosecution Service and the procurators fiscal in Scotland have powers to bring prosecutions under section 47 of the Financial Services Act 1986. Disaggregated figures do not exist showing cases brought by the SFO or the CPS and no cases have been brought by the procurators fiscal. The DTI has mounted criminal investigations in six cases; four cases have been prosecuted resulting in two convictions.