§ Mr. CranTo ask the Chancellor of the Duchy of Lancaster what estimate he has as to how many firms requiring to be licensed under the provisions of the Financial Services Act 1986, are trading without licences; and what action has been taken to ensure that unlicensed firms comply with their statutory duty.
§ Mr. MaudeSection 3 of the Financial Services Act prohibits any person from carrying on investment business unless authorised or exempted under the Act. The relevant provisions were commenced on 29 April and it is too early to make a meaningful estimate of the extent of unauthorised investment business. However, the publicity which the new requirement has received, the substantial penalties which can be incurred if this section is contravened and the resources which the SIB, which is responsible for taking the lead in enforcing this provision, are allocating to following up complaints, mean that I do not expect widespread non-compliance.
§ Mr. CranTo ask the Chancellor of the Duchy of Lancaster on how many occasions inspectors have been appointed under section 106 of the Financial Services Act 1986.
§ Mr. MaudeEleven authorities have been given by my Department under section 106 of the Financial Services Act. The power to give such authorisation is also exercisable by the Securities and Investments Board. Questions about the SIB's exercise of its powers are a matter for the board.