§ 43. Mr. John GreenwayTo ask the Secretary of State for Trade and Industry what recent representations he has received about the draft European community rules on capital adequacy of independent financial advisers.
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§ Mr. RedwoodI have received a number of representations from organisations and firms in the independent financial intermediaries sector about capital adequacy requirements, including the Financial Intermediaries, Managers and Brokers Regulatory Association, the British Insurance and Investment Brokers Association, the Insurance Brokers Registration Council, the Life Insurance Association, and IFA Promotion Ltd. These representations have been helpful in clarifying their members' concerns that the proposed EC Capital Adequacy Directive may impose inappropriate minimum capital requirements. I share this concern. The United Kingdom will continue to press for capital requirements to be related to risk, and for levels of initial capital that do not act as barriers to market entry.