§ Mr. DrewTo ask the Chancellor of the Exchequer what assessment he has made of the advantages and disadvantages of allowing for third party monitoring where individuals enter into agreements for the issuing of bonds. [110295]
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§ Miss Melanie JohnsonThere has been no specific consideration of third party monitoring. However, issues of bonds and other debt securities in the UK, whether by individuals or corporate entities already need to conform with various requirements. In the case of bonds to be admitted to the Official List, issues need to comply with the Listing Rules. In the case of unlisted bonds, the relevant legislation is the Public Offers of Securities Regulations 1995.
§ Mr. DrewTo ask the Chancellor of the Exchequer what steps he is taking to ensure that individuals who invest in bonds receive proper advice and guidance. [110294]
§ Mr. TimmsThe UK has a very robust investor protection system. The Financial Services and Markets Bill will enhance and streamline this further, with the introduction of a single regulator supervising a more integrated and efficient approach.
Investors can choose to make decisions on their own, without taking professional advice, but they have a "right" to receive accurate information that they need to decide whether the investment is "right" for them, in their circumstances.
Investors who do receive advice must be told about the status of the person they deal with; be asked about their circumstances; be told why an investment is suitable for them in those circumstances; and must be given clear information about commission and charges, the risk, and the aims and benefits of the investment, confirmed in writing.