HC Deb 20 January 1989 vol 145 cc332-3W
Mr. Nicholas Winterton

To ask the Chancellor of the Duchy of Lancaster if at his next meeting with the Securities and Investments Board he will ask for a list of the officers and members of the governing body of that organisation and of all the self-regulatory organisations which it has authorised; and if he will make that information available in theOfficial Report.

Mr. Newton

[holding answer 16 January 1989]: The members of the Securities and Investments Board and its senior management were set out in the board's report, laid before Parliament under section 117(2) of the Financial Services Act on 28 July 1988. Since that date Professor Budd has left the board and Mr. D. Fellows and Mr. G. Ross Russell have been appointed to the board. The arrangements for publishing details of the members of the governing bodies of recognised self-regulating organisations and of the staff of those organisations are matters for the SIB and the organisations concerned.

Mr. Nicholas Winterton

To ask the Chancellor of the Duchy of Lancaster what information he has concerning the numbers of officers or council members of self-regulatory organisations who have been suspended from membership of those organisations.

Mr. Newton

[holding answer 16 January 1989]: This is a matter for the Securities and Investments Board and the self-regulating organisations.

Mr. Nicholas Winterton

To ask the Chancellor of the Duchy of Lancaster whether he will call for a report from the Securities and Investments Board into the different treatment received from self-regulatory organisations by companies or individuals who did business with the Barlow Clowes companies.

Mr. Newton

[holding answer 16 January 1989]: This is a matter for the Securities and Investments Board and the self-regulating organisations.

Mr. Nicholas Winterton

To ask the Chancellor of the Duchy of Lancaster whether he will take steps to prevent an individual partner, proprietor or director of a trading entity suspended from membership of a self-regulatory organisation from continuing to operate in the financial services industry through his position as a partner, proprietor or director of a second trading entity licensed by the same or another self-regulatory organisation; and if he will make a statement.

Mr. Newton

holding answer 16 January 1989]: It is open to the Securities and Investments Board and the recognised self-regulating organisations to refuse authorisation to, or with it from, a business on the grounds of matters concerning a director, partner, controller or employee of that firm. Those matters may include the fact that such an individual has been subject to regulatory action by the same or another regulator or was connected with a firm subject to such action. In addition, the SIB has powers under section 59 of the Financial Services Act to prohibit individuals from being employed in connection with investment businesses by an authorised or exempted person. The way in which these powers are exercised is a matter for the Securities and Investments Board and the self-regulating organisations concerned.

Mr. Nicholas Winterton

To ask the Chancellor of the Duchy of Lancaster what provision his Department makes to ensure that an individual who invested funds through a financial services company which has subsequently been suspended from membership of a self-regulatory organisation can continue to receive advice about that investment.

Mr. Newton

[holding answer 16 January 1989]: It is open to any regulatory body operating under the Financial Services Act, when it suspends a firm regulated by it, to impose conditions concerning services provided to existing clients. Whether such conditions are imposed, and what form they take, are matters for the body concerned to judge according to the circumstances of a particular case.