§ Ms LynneTo ask the Chancellor of the Exchequer what action has been taken by his Department to improve the regulation of the financial industry since the publication of his Department's inquiry into the Barlow Clowes financial fraud case. [18322]
§ Mrs. Angela KnightThe Department of Trade and Industry inspectors' report was published in July 1995, but the Government did not wait until then to address the regulatory issues raised by the Barlow Clowes case. Barlow Clowes operated under the Prevention of Fraud (Investments) Act 1958. The deficiencies of that regulatory regime were recognised when it was replace by the Financial Services ActFSA-1986. The introduction of the FSA saw an improvement in investor protection: it raised requirements for authorisation and widened the categories of business for which firms required authorisation. Following the review in May 1993 by Andrew Large of the role and functions of the Securities and Investments Board, greater emphasis was given to investor protection by using all the available enforcement powers. More recent developments, such as the new training and competence regime, have also played their part. As a consequence of these changes, the additional protections suggested by the report have, where appropriate, already been made available.
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