§ Mr. McCrindleasked the Secretary of State for Trade and Industry what steps have been taken in the implementation of the Financial Services Act 1986 to ensure that the level of investor protection in cases where the intermediary is a member of a recognised professional body is on the same level as in cases where the intermediary is authorised by a self-regulation organisation; whether he has discussed this matter with the Securities and Investments Board; and if he will make a statement.
§ Mr. HowardThe Financial Services Act provides that a self regulating organisation or professional body can only be recognised if it has rules governing the carrying on of investment business which afford investors protection at least equivalent to that afforded by the rules and regulations made by the Secretary of State or designated agency. Recognition cannot he granted to an applicant who does not satisfy this criterion. The standard of investor protection established under the Act is therefore the same for members of recognised self-regulating organisations and persons certified by recognised professional bodies.