§ Mr. CousinsTo ask the President of the Board of Trade what steps he is taking to co-ordinate action by regulatory bodies in the United Kingdom, in United Kingdom dependencies and elsewhere to end the offering of soft commissions by brokers; and what steps he will take to ensure that insurance companies declare soft commissions offered to, or by, brokers and fund managers acting on their behalf.
§ Mr. NelsonI have been asked to reply.
Under the Financial Services Act 1986 "soft commissions" are closely controlled. They must be subject to formal soft commission agreements in each case and the range of benefits provided limited to those relating specifically to the fund manager's business. Fund managers are obliged to make regular and full disclosure to the fund trustees of all benefits provided to them.
Action in the dependent territories and elsewhere is a matter for their regulatory authorities.