§ Mr. Maxwell-Hyslop
asked the Secretary of State for Trade and Industry why the Director General of the Office of Fair Trading did not obtain from Arthur Young Management Consultants specific data concerning the effects of the proposed regulations pursuant to the Financial Services Act upon the incomes and viability of single-person firms of practitioners in the financial services industry before communicating his final recommendations to the Secretary of State prior to the coming into force of the new regulations; and whether he will ensure that this action is taken forthwith.
§ Mr. Maude
The Financial Services Act provides that, in deciding whether to give leave for the recognition of a self-regulation organisation, my right hon. and noble Friend the Secretary of State must have regard to the report made by the Director General of Fair Trading under section 122(2) of the Act. No such report has yet been submitted in respect of any of the organisations whose applications for recognition are currently under consideration. I understand that, in order to assist him in preparing these reports, the director general commissioned a report from Arthur Young Management Consultants (AYMC) on the effect of certain rules on small financial intermediaries. I am informed that the sample surveyed by AYMC included a number of sole practitioners.