§ Mr. David ShawTo ask the Secretary of State for Trade and Industry if he will take steps to amend the Financial Services Act to make it clear that the liability for monitoring tied agents rests with the life insurance company which has entered into the contractual arrangements which result in the tied arrangement.
§ Mr. RedwoodThe Financial Services Act already makes the principal of a tied agent responsible for the latter's actions in carrying on investment business for which the principal has accepted responsibility in writing. The Securities and Investments Board and the various self-regulatory bodies established under the Act are responsible for making and enforcing rules to ensure compliance with this requirement.