EUB Caution

[John Young <jya@pipeline.com>]

The Times [Of London] October 11, 1996


Investors cautioned over bank on Internet 

By Robert Miller 


The Bank of England has issued a blunt warning to UK investors 
to "think carefully" before handing over their money to an 
offshore bank that is advertising for depositors on the Internet. 


European Union Bank (EUB) is a tiny institution backed by 
American investors and based in Antigua. Until last month it 
was chaired by Lord Mancroft, 39, an Old Etonian. Lord Mancroft, 
who confirmed that he had met Michael Foot, the Bank's director 
of supervision, yesterday about EUB, said: "I understand their 
concerns." He added that his contract as chairman of EUB had 
expired last month. 


The sharp warning to UK investors from one of the Bank's most 
senior directors reflects the concerns of City watchdogs about 
the possible proliferation of financial services being offered 
on the Internet and which fall outside their regulatory scope. 
If any such firm failed investors would not be covered by the 
UK compensation schemes. 


The Bank said of EUB: "This bank is not authorised in the UK 
and has not sought authorisation. As with other offshore 
deposits we would advise intending depositors to carry out 
appropriate due diligence." 


[End]