Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Baroness Wilcox (Conservative) on Monday, 12 July 2010.

Community Broadband Network Ltd

Question: To ask Her Majesty’s Government whether they will investigate the statement of Mr Malcolm Corbett, chief executive officer of the Community Broadband Network Ltd, that from 2004 it had acquired 200 members when the governing board declared in its annual return to the Financial Services Authority (FSA) 4, 8, 10, 12 and 12 members for the years 2004 to 2008 respectively; and why from those records filed with the FSA they have not carried out an investigation.

Answer: The Government have no plans to investigate. Any evidence of wrongdoing should be presented to the appropriate authorities. The FSA’s role under the Industrial and Provident Societies Act 1965 (the 1965 Act) is that of registering authority. Under the 1965 Act there are very limited powers and scope of investigation for the FSA other than where an application is received from a prescribed number of members. Section 48 of the 1965 Act enables the FSA to require a society to provide documents and information but only where the FSA is considering cancelling a society’s registration on particular grounds, such as a society not fulfilling the conditions of its original registration.

Secondary information