HC Deb 15 February 1990 vol 167 c389W
Mr. French

To ask the Secretary of State for Trade and Industry if he has any plans to set up a compensation fund to assist investors who have lost funds through C. J. How.

Mr. Redwood

[holding answer 13 February 1990]: None.

Mr. French

To ask the Secretary of State for Trade and Industry if he will make a statement about the responsibilities of FIMBRA in respect of the investment company C. J. How.

Mr. Redwood

[holding answer 13 February 1990]: From 1 January 1984 until the introduction of the Financial Services Act on 29 April 1988, FIMBRA was recognised under section 15 of the Prevention of Fraud (Investments) Act. C. J. How was a member of FIMBRA between July 1982 and January 1988 and FIMBRA was therefore responsible for the regulation of the firm's business of dealing in securities from January 1984 until January 1988 when its membership was terminated.

Mr. French

To ask the Secretary of State for Trade and Industry when his Department was first aware that the investment company C. J. How had lost its membership of FIM BRA and what action was taken to alert existing and potential investors.

Mr. Redwood

[holding answer 13 February 1990]: My Department was notified on 21 January 1988 that FIM BRA had terminated the membership of C. J. How. My Department was not notified whether FIMBRA had publicised that fact.