§ Mr. Nelsonasked the Secretary of State for Trade and Industry what are his proposals for the status of the Securities and Investments Board; and what investigation and prosecution powers it will receive if it becomes a designated agency under the Financial Services Bill.
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§ Mr. HowardGovernment amendments to the Financial Services Bill are to be tabled today.
The amendments make it possible for the Secretary of State to transfer his prosecution powers to a designated agency. He will be able to transfer the prosecution powers in whole or in part, and to make the transfer subject to conditions or restrictions; and he will retain the option of bringing prosecutions himself.
The amendments will also make it possible for the Secretary of State to transfer to the agency his powers to investigate anyone carrying on investment business. This could cover unauthorised investment businesses as well as authorised businesses. The Secretary of State will continue to be able to conduct his own investigations.
The amendments also provide for the naming of the Securities and Investments Board in the Bill. This does not affect the status of the board as a private sector body. Provided that the Secretary of State is satisfied that the board meets the criteria specified in the Bill, it will become the only body to which the Secretary of State may transfer powers when the first transfer takes place. The Secretary of State will still have discretion as to the extent of the transfer; and he will subsequently be able to resume powers if the criteria are no longer met, and he could then transfer powers to any other body which met the criteria.
The Government believe that these proposals will strengthen the effectiveness of the new regime for regulating investment business whole preserving the flexibility of the private sector designated agency.