HC Deb 22 May 1989 vol 153 cc391-2W
Mr. McCrindle

To ask the Chancellor of the Duchy of Lancaster if he remains satisfied that building societies should remain outside the ambit of the Financial Services Act's investor protection provisions; and if he will make a statement.

Mr. Maude

[holding answer 19 May 1989]: Any building society which carries on investment business in the United Kingdom must be either an authorised person or an exempted person under the Financial Services Act. In this respect their position under the Act is identical to that of any other person carrying on investment business. Certain requirements imposed by the SIB and the self-regulating organisations recognised under the Act do not apply to building societies—for instance, those relating to financial supervision and the coverage of the compensation scheme. The application of such provisions is a matter for the board or the organisation concerned.

Mr. McCrindle

To ask the Chancellor of the Duchy of Lancaster if he has any plans to extend the Financial Services Act's investor protection provisions to cover building societies which become plcs under the Building Societies Act 1986; and if he will make a statement.

Mr. Maude

[holding answer 19 May 1989]: A building society which becomes a plce and which carries on investment business is subject to the requirement to be authorised or exempted under the Financial Services Act in the same way as any other person carrying on investment business. The application to such societies of particular requirements of the SIB or a relevant self-regulating organisation recognised under the Act is a matter for the SIB or the organisation concerned.