Financial Advisers (Hansard, 20 February 1991)

8. Mr. Andy Stewart
To ask the Secretary of State for Trade and Industry what proposals Her Majesty's Government have to assist independent financial advisers in the EC.

§ Mr. Redwood
My Department and I argue strongly for independent financial advisers in Europe, particularly in respect of the investment services directive and the capital adequacy directive. We should like them to take advantage of the passports in that directive, but only if the capital requirements are sensible.

Mr. Stewart
Will my hon. Friend confirm that the Government believe that independent financial advisers have a role to play in the single European market? Will he confirm that the Government are doing everything possible to ensure that such advisers can play such a role?

§ Mr. Redwood
Yes, I hope that they will have a role to play. I should like it if they would have a passport, through the investment services directive, to carry out cross-border business, but that would depend on getting the right answer about capital, which is important to them.

§ Mr. Tom Clarke
Will the advisers have a role in explaining away the neglect by the present Government of the British film industry in Europe? Will they explain why the Government have reneged on their fairly miserable commitment to give £5 million to the European co-production fund? If that is to be the policy of Her Majesty's Government in Europe, will the Minister accept that the advisers will have an almighty job to explain away the once-thriving British film industry?

§ Mr. Redwood
That has nothing to do with the main question and is symptomatic of Opposition Members' attitude to the important issue of IFAs. Unfortunately, the hon. Member for Redcar (Ms. Mowlam) is not present today. She has been alleging in the press that FIMBRA—the Financial Intermediaries, Managers and Brokers Regulatory Organisation—is in danger of becoming bankrupt. I hope that she will withdraw that allegation. Another way in which we are helping IFAs is to show the true financial position of FIMBRA, which told me yesterday that it now has net cash in the bank and a budget plan for next year which will mean that its costs will not be greater than its revenues if all goes according to plan. I hope that Opposition Members will concentrate on IFAs, the matter in hand, which have no role to play in the film industry.