§ Mr. Tim Smithasked the Secretary of State for Trade and Industry (1) how many licenses had been issued under the Prevention of Fraud (Investments) Act 1958; and how many applications were pending at the latest convenient date;
(2) what is his estimate of the number of persons who should be licensed under the Prevention of Fraud (Investments) Act 1958, but who are not.
§ Mr. FletcherSection 1 of the Prevention of Fraud (Investments) Act 1958 requires anyone carrying on the business of dealing in securities to be licensed, unless exempted by section 2 of the Act (for example by being a member of a recognised association of dealers in securities, such as the National Association of Security Dealers and Investment Managers). 527 businesses held a principal's licence to carry on the business of dealing in securities on 1 January 1984; and on that date 121 applications for principal's licences were under consideration. The equivalent figures for representatives' licences to deal in securities are 1,615 and 415 respectively.
It is impossible to make any reasoned estimate of the number of people who may be carrying on a business which requires them to be licensed but who are not. Other factors apart, the need for a licence depends to a large 105W extent on the individual circumstances. Over the past two years the number of intermediaries authorised to deal in securities (other than members of the Stock Exchange and certain other bodies) has more than doubled.