§ Mr. MurphyTo ask the Secretary of State for Trade and Industry if he will take steps to instigate an inquiry under the Companies Acts of alleged insider dealing in the shares of Rechem International.
§ Mr. RedwoodThe power to appoint inspectors to investigate possible insider dealing offences is in section 177 of the Financial Services Act 1986.
The surveillance division of the stock exchange looks at cases of price movements before price-sensitive announcements, and where appropriate it passes information to my Department for consideration of whether further investigation, in particular by the appointment of inspectors, is desirable. Such appointments are not normally announced.