Mandatory Reports to Be Made by Banks

Part of New Clause 3 – in the House of Commons at 4:45 pm on 15 July 1991.

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Photo of Mr Nigel Forman Mr Nigel Forman , Carshalton and Wallington 4:45, 15 July 1991

I hope that my hon. Friend will forgive me if I do not. I want to be brief.

Obviously, much more will be said about the auditors, and I shall not say much about them now. At present, auditors have the right to draw the attention of the supervisors and regulatory agencies to any shortcomings that could amount to fraud in certain circumstances, but no duty is imposed on them to do so. Ministers should take that into account when considering any changes in the law.

I appreciate the problems of small businesses, but I do not think that new clause 3 would solve them. Everyone should be extremely careful not to become involved in circumstances such as those that gave rise to the tragedy of BCCI.