§ Mr. CongdonTo ask the President of the Board of Trade what changes are proposed to the banking provisions of the Companies Act 1985.
§ Mr. Neil HamiltonA consultative letter was issued on 17 November seeking comments on draft regulations to change some of the banking accounting provisions of the Companies Act 1985.
The draft regulations would delete the definitions of the terms "banking activities" and "banking transactions" from schedule 9 to the Act. Banks would then, as they have sought, interpret the terms in the context of EC directive 86/635/EEC on the annual and consolidated accounts of banks and other financial institutions.
The draft regulations would also ensure that the UK holding companies on non-UK banking subsidiaries disclose details of transactions such as loans or mortgages from the subsidiaries to staff in the same way as UK holding companies of UK banking subsidiaries.
Comments should be made by 17 December.