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]