HC Deb 19 May 1981 vol 5 cc55-6W
Mr. Weetch

asked the Chancellor of the Exchequer if he will seek to legislate to compel building societies to publish in their accounts the proportion of their funds that is provided by investment money from professional services on commission.

Mr. Lawson

Building societies are always required to disclose the amount of their expenditure on commission and agency fees in the annual return they are required to make to the Chief Registrar, and could be required to disclose the information in question, if it were thought necessary, under the powers contained in section 88(3) of the Building Societies Act 1962. Further legislation is therefore unnecessary.

Mr. Weetch

asked the Chancellor of the Exchequer if he will seek to legislate to prevent building societies paying commission to attract investment money.

Mr. Lawson

No, but this and other matters will be considered when building society legislation is next proposed.

Mr. Weetch

asked the Chancellor of the Exchequer if he will introduce legislation to seek to require advertisements for building societies to contain a warning to non-taxpayers about the financial disadvantages to them of such an investment.

Mr. Lawson

No. Section 57 of the Building Societies Act 1962 already contains power to make regulations about building societies' advertisements should it be considered necessary.

Mr. Weetch

asked the Chancellor of the Exchequer whether he will prepare and publish a Green Paper as a prelude to building society legislation at an early date.

Mr. Lawson

I refer the hon. Member to the answer I gave to my hon. Friend the member for Lichfield and Tamworth (Mr. Heddle) on 17 February 1981.—[Vol. 999, c. 85.]