§ Mr. McCrindle
To ask the Secretary of State for Trade and Industry whether, in view of the Garston Amhurst case, he will introduce legislation making the organisations appointing representatives liable for all the actions of these representatives, whether in the course of conducting authorised business or not; and if he will make a statement.
§ Mr. Redwood
[holding answer 13 March 1990]: Under the Financial Services Act, a principal is responsible for its appointed representatives' actions in carrying on investment business for which the principal has accepted responsibility in writing. It is for the Securities and Investments Board and the self-regulating bodies to consider what requirements should be imposed on principals in relation to the activities of their appointed representatives. I have no plans to amend the Financial Services Act in this regard.