Select Committee on Treasury Minutes of Evidence

Examination of Witnesses(Questions 760-764)



  760. I have to say, though, following up the question of my colleague Andrew Tyrie, you have come along here badly briefed. Surely you expected simple questions like this from us?

  (Mr Hall) We can give you figures for what we know our clients have lost overall but we, frankly, do not think in terms of whether or not we were the sponsoring broker because we do not have any reason to, but I will give you those figures.

  761. Okay and have you yet paid any compensation to any client regarding investment in splits?

  (Mr Hall) Yes we have.

  762. If so, are all the cases related to new issues where you were the sponsoring broker?

  (Mrs Bowden) It is a fairly small number we have paid compensation on, but from memory I do not think any of those were actually taken up in new issues. I think every one of the stocks was purchased in the market.

  763. Okay. Can I thank you for your attendance. We are looking forward to your memorandum. As I mentioned to previous witnesses, we are taking this issue forward because it is the whole industry we are interested in and we look forward to maintaining this dialogue.

  (Mr Hall) Thank you very much. May I just say, because I did not have a chance at the beginning, how extremely upset and sorry we are that clients lost money in this and we are extremely keen to help yourself and your Committee and the regulators and the industry to try and get to a quick conclusion on this matter because we do feel an awful lot of damage is still being done to the shares and we have a lot of investors in shares that are still quoted who are, frankly, dependent now on the winding up value because they are not able to trade in them.

  764. Exactly. And from our Committee's perspective we are interested in ensuring that the whole industry is cleaned up because there is a stain on the industry as a result of this and it is fostering a lack of confidence of people in the savings industry, so it is very important that we do this. What we are looking for is co-operation and honest answers from people on this.

  (Mr Hall) You will get that from us.

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