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Fraud

Volume 451: debated on Tuesday 7 November 2006

To ask the Chancellor of the Exchequer what assessment he has made of the measures to protect savers with (a) building societies, (b) banks and (c) credit unions from fraud. (99039)

[holding answer 2 November 2006]: The Treasury is responsible for the overall institutional structure of financial regulation and the legislation which governs it.

The Financial Services Authority's powers and responsibilities are set out in the Financial Services and Markets Act 2000. These include the authorisation and prudential supervision of banks, building societies and credit unions.

The FSA's rules require firms to take reasonable care to establish and maintain effective systems and controls for compliance with applicable requirements and standards under the regulatory system and for countering the risk that the firm might be used to further financial crime. The definition of financial crime includes fraud.

The Chief Secretary, along with the Attorney-General, commissioned a review of the UK response to fraud which reported in the summer and has just been subject to consultation. The Attorney-General's office is assessing the responses to this consultation and we will work closely with them to identify any appropriate action.