HC Deb 06 July 1994 vol 246 cc211-2W
Mr. French

To ask the Chancellor of the Exchequer if he will list the regulatory organisations and Government Departments which have a role to play in relation to the unit trust industry, with their respective responsibilities.

Mr. Nelson

The information requested is as follows:

  1. (a) The Securities and Investments Board is responsible for authorising unit trusts and for product regulation of authorised unit trusts—AUTs. It also oversees self-regulating organisations—SROs—recognised under the Financial Services Act 1986. Trustees and managers of AUTs may be authorised either directly from SIB or through membership of an SRO.
  2. (b) The Investment Management Regulatory Organisation is the SRO for regulation of fund management.
  3. (c) Regulation of retail sales at present falls within the scope of the Life Assurance and Unit Trust Regulatory Organisation for marketing of AUT products, and the Financial Intermediaries, Managers and Brokers Regulatory Association for independent financial advisers who offer investment advice to the general public. From 18 July, these functions will fall primarily to the Personal Investment Authority, or in certain instances to IMRO.
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  4. (d) Certain professional bodies also recognised by SIB under the FSA (RPBs) regulate the sale and marketing of AUTs through their member firms. The main ones are the various professional accountancy bodies—ICAEW, ICAS, ICAI and CACA—the Insurance Brokers Registration Council and the three law societies.
  5. (e) The Treasury is responsible, under the FSA, for general policy oversight relating to collective investment schemes, including questions of whether responsibility for further functions relating to the investment and borrowing powers of AUTs should be transferred to SIB.