§ 29. Mr. Liddall
asked the President of the Board of Trade whether he is aware that the contract, under which sub-unit holders in a fixed trust are now invited to surrender their sub-units against shares in a new managed trust, provides not only that the fixed trust managers shall assign to the new company the released 207 service fund belonging to the unit-trust holders but also that the new company shall hand back to the fixed trust managers the whole of the fund; and whether he will require that the terms of fixed trust conversion optional invitations shall be referred to his Department pending unit-trust legislation so that he may protect the public against being deprived of the whole of their initial payments for loading costs, as will be the case in the above-mentioned invitation to exchange?
I understand that, in the case to which my hon. Friend no doubt refers, the agreement provides for the service fund to be irrevocably assigned to the investment trust company in annual instalments proportionate to the extent of the conversion, and for the investment trust company to pay it, not to the fixed trust managers, but to the company which is to provide secretarial services, and only as long as they are so rendered. The fund is left in the hands of the trustees until the releases are made. The answer to the latter part of the question is in the negative.
Does the President of the Board of Trade propose to introduce legislation with regard to this matter?