§ Mr. David ShawTo ask the Secretary of State for Trade and Industry what information he has on the extent of the potential liability of banks to recompense members of the public as a result of frauds being perpetrated by agents tied to life assurance subsidiaries of banks.
§ Mr. RedwoodThe statutory responsibility of the principal of a tied agent under the Financial Services Act is limited to the latter's actions in carrying on investment business for which the principal has accepted responsibility in writing. The liability of the principal's parent company depends on the nature of the parent-subsidiary relationship. If both are limited companies, the liability of the parent, whether or not a bank, is that of any limited liability company to a limited liability subsidiary.