§ Mr. Sayeedasked the Secretary of State for Trade and Industry to what extent his Department is able to exercise its regulatory role in respect of the activities in the United Kingdom of companies based in foreign countries which offer investments to citizens in the United Kingdom but which transact their business entirely by post and which do not have any establishment or outlet in the United Kingdom; and if he will make a statement.
§ Mr. HowardMy Department can exercise its regulatory powers only upon persons within United Kingdom jurisdiction. However, I presume that my hon. Friend's concern was prompted mainly by the activities of certain firms in Amsterdam; and I am glad to be able to tell him that the Netherlands authorities— who have been well aware of our concern about these activities—have now taken appropriate measures. The relevant legislation came into effect on 1 May.
Since a number of hon. Members have written to me on this subject, I am having a copy of the English language briefing, prepared by the Netherlands Ministry of Finance, placed in the Library.