§ 61. Mr. Ian Taylor
To ask the Secretary of State for Trade and Industry what assessment has been made by his Department of the implications for British financial institutions of any change in arrangements for capital adequacy.
§ Mr. Redwood
The European Commission has consulted member states and other interested parties in preparing its proposals for a directive on the capital adequacy of Community investment firms, which should be published shortly. The Government will continue to take account of the views of British financial institutions during the negotiation of the directive. I am particularly concerned that the levels of initial capital proposed may he against the interests of smaller and new financial intermediaries.