§ Mr. Robin Cookasked the Secretary of State for Trade and Industry what information he has to how many cases of suspected insider dealing have been investigated by the Stock Exchange Council since 1980; how many of these cases were referred to his Department for further investigation; what was the total number of inspectors appointed by his Department to report on such cases; and what is the number of prosecutions brought arising from their report.
§ Mr. HowardThe Stock Exchange has referred about 100 cases of suspected insider dealing to my Department since the relevant legislation came into effect. The investigation of possible offences which my right hon. Friend is responsible for prosecuting is normally carried out by investigating officers who are members of the Department's staff. The power to appoint inspectors became available only on 15 November, since when there has been one appointment. To date, there have been nine prosecutions for insider dealing.
§ Mr. Sedgemoreasked the Secretary of State for Trade and Industry if, as part of the Government's plans to deal with insider dealing, he will bring forward legislation to require those who purchase shares to register the beneficial owner of the shares
§ Mr. HowardThe registration of shares is a matter for the issuing company rather than the purchaser. I do not consider it necessary, for the purposes of pursuing insider dealing, to add to the means which the law already provides for discovering the beneficial ownership of shares. Apart from section 177 of the Financial Services Act, these include sections 442 and 444 of the Companies Act 1985, which give the Secretary of State for Trade and Industry powers to investigate the ownership of companies and to obtain information as to those interested in shares.