The Enquiry into Fixed Trusts
THE Board of Trade may be commended both for its promptitude in appointing a Committee to enquire into Fixed Trusts and also upon its composition. It will be remembered that as a result of a recent investigation into the construction of Fixed Trusts the Committee of the Stock Exchange expressed the view that the Fixed Trusts undoubtedly fulfilled a useful purpose, but that in the judgement of the Committee certain safeguards for the investor required to be introduced, safeguards which, in the opinion of this Committee, could only be secured by some kind of legislation. Pre- sumably-, therefore, the appointment of a Board of Trade Committee was decided upon as the best means for determining what kind of legislation, if any, should be adopted.
A STRONG COMMITTEE.
A better Chairman of the Committee than Sir Alan Anderson, the Member for the City of London, could not passibly have been chosen, blessed as he is not only with many years of business experience, but also with a fund of sound common sense. Other members of the Committee are also well known in their various spheres of activity. Mr. C. U. Peat, M.C., M.P., is, of course, connected with the well-known firm of Accountants, while Mr. R. P. Wilkinson is an active member of the Stock Exchange Committee and has served as Chairman of the Stock Exchange Fixed Trusts Sub-Committee to which I have already referred.
RECENT PROPOSALS.
It may be remembered that among the Stock Exchange Sub-Committee's recommendations was one to the effect that under certain conditions a certificate of recognition of a Fixed Trust should be given, and the conditions of obtaining such a certificate should include provisions to the effect that no security must be included, in a Unit, if not dealt in on the Stock Exchange, while it was also pro- vided that the Managers of a Trust must, on request, furnish the Share and Loan Department and the Trustee with detailed statements showing how the offered and repurchased price of Units or Sub-Units had been arrived at, based upon the buying and selling prices of the under- lying securities as quoted on the Stock Exchange, showing separately in such particulars any loading for the re- muneration of the Trustees or Managers or for expenses.
A SPIRIT OF CO-OPERATION.
It is to the credit of the controllers of the Fixed Trusts that readiness to fall in with these suggestions was at 011CC shown. with equal readiness to accept the sug- gestions with regard to legislation; the leaders of the Fixed Trusts movement, indeed, engaged to co-operate in any way possible in the furtherance of the proposals. This attitude on the part of Fixed Trusts has undoubtedly increased the feeling of confidence in the movement as a whole, and if, as is generally anticipated, the investigation and subsequent Report by the Board of Trade Committee leads to legislation of a useful kind, it is probable that the Trust movement, which has already grown rapidly to such important dimensions, may grow still more rapidly in the near
Previous page
