§ Mr. HoodTo ask the Secretary of State for Scotland how many finance companies, licensed under the Financial Services Act, have had their licence withdrawn each year since 1988 for malpractice in Scotland.
§ Mr. MaudeI have been asked to reply.
The authorisation provisions of the Financial Services Act did not come into operation until 29 April 1988. A finance company will only require authorisation only if, in addition to offering credit, it is also carrying on investment business as defined in that Act. It is not possible without incurring disproportionate cost to identify from the records available how many of the persons who have had their authorisation revoked under the Act might be described as "finance companies", which is not a category recognised under the Financial Services Act. Nor is it possible without incurring disproportionate cost to identify from the records available those instances (whether involving finance companies or not) where authorisation was revoked because of misconduct which took place in Scotland.
The predecessor to the Financial Services Act was the Prevention of Fraud (Investments) Act 1958. A finance company required a licence under that Act only if, in addition to offering credit, it was also carrying on the business of dealing in securities. It is not possible from the records available to say how many licensed dealers who have had their principal's licences revoked under the Act might be described as "finance companies", which was not a category recognised under the Prevention of Fraud (Investments) Act. Nor is it possible without disproportionate cost to identify from the records available those instances (whether involving finance companies or not) where a principal's licence was revoked because of misconduct which took place in Scotland.