§ Mr. Hunterasked the Secretary of State for Trade and Industry in the light of the Stock Exchange and International Securities Regulatory Organisation merger, what discussions he has had regarding the access available to British investment firms in Japan.
§ Mr. ChannonI welcome the vote by Stock Exchange members in support of the merger with the International Securities Regulatory Organisation. This is a considerable step forward both in terms of strengthening the central market in equities and putting into place the new self-regulatory structure.
London's strong position as an international financial centre means that I welcome the participation in the United Kingdom's financial markets of foreign companies of high repute. But I am also concerned to see that our firms have reciprocal opportunities in markets overseas, especially in the world's leading financial centres. That is why the Financial Services Act, which will come into force during 1987, contains reciprocity powers applicable to every investment firm doing business here, irrespective of the form of authorisation to do investment business under the Financial Services Act.
I would expect Japan to provide British firms reciprocal access to their markets, in particular to the Tokyo Stock Exchange. Although I understand that further securities branch licences are to be issued to British firms, I do not consider that such reciprocal access has yet been provided.
I shall be visiting Japan towards the end of this month. During my visit I shall be discussing with the Japanese authorities the access for British firms to Japanese financial markets, including the Tokyo Stock Exchange.