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Companies (Solicitation Of Money Deposits)

Volume 640: debated on Tuesday 9 May 1961

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14.

asked the President of the Board of Trade what are the reasons for delay in introducing legislation to regulate the solicitation of money deposits by companies; and when he intends to introduce such legislation.

The reason is the difficulty of framing requirements, particularly as regards the contents of the accounts to be published, which will give the depositor an adequate measure of protection without being unduly burdensome or hampering to legitimate business. As regards the latter part of the Question, I regret that I am not in a position to add to previous replies on this subject.

While appreciating the difficulties and the points which my hon. Friend has made, may I ask if he is aware that legislation on this subject was first foreshadowed four and a half years ago in the Queen's Speech of 1956? Does not he think it time that we had legislation on this subject? Will he and his Department kindly look at the matter again to see if we can have legislation during this Session, as has already been promised?

We are looking at the matter all the time. The basic trouble is that there are many ways in which this control might be effected and we have to examine all of them with the greatest of care.