§ Mr. WATTasked the President of the Board of Trade whether he is aware that by regulation of his Department the £20,000 which it is necessary to lodge before starting an insurance company must be paid before the issue of a prospectus of a company; whether he is aware that this regulation quite prohibits new companies being floated and gives a monopoly to the large companies now in existence; and whether he can see his way to alter this regulation so that the money can be paid before starting business, but not before issuing the prospectus?
Mr. BUXTONThere is no regulation of my Department that the deposit of £20,000 mentioned in my hon. Friend's question must be paid before the issue of a prospectus by a new insurance company. The Assurance Companies' Act of 1909 (which, in this respect, exactly reproduces the Act of 1870) provides, however, that the Registrar shall not issue a certificate of incorporation of the company until the deposit has been made, but there is no provision in the Statute or elsewhere that the deposit must be paid before the issue of the prospectus.