§ Mr. LawsTo ask the Chancellor of the Exchequer if he will make a statement on the actions taken by the Financial Services Authority to address investor concerns about the fall in value of the Split Capital Trust market in the UK over the last two years. [77494]
§ Ruth KellyThe Financial Services Authority issued a discussion paper on the split capital investment trust market in December 2001. The results of this discussion paper were published in May 2002. Since then the FSA have been investigating past problems, including possible problems with marketing literature, possible mis-selling and alleged collusive behaviour by some managers of split capital trusts. Looking forward, they have been considering if any changes are needed to the rules of their regulatory handbook or the listing rules. They have also been liaising with the Association of Investment Trusts on their proposals for improved disclosure of the portfolios and borrowings of split capital trusts.
§ Mr. LawsTo ask the Chancellor of the Exchequer what(a) oral and (b) written communications took place between the Financial Services Authority in the UK and the Guernsey Financial Services Commission between 1st December 2000 and 30th April 2002 on the subject of the (i) risk characteristics and (ii) disclosure and regulation relating to Split Capital Trusts; and if he will make a statement. [77495]
§ Ruth KellyIn the course of its duties the FSA liaises regularly with other financial regulators about issues of mutual interest. The details of these discussions is a matter for the FSA itself.