HC Deb 31 October 1990 vol 178 cc613-4W
126. Mr. John Greenway

To ask the Secretary of State for Trade and Industry what progress he has made by his discussions within the Council of Ministers on the need to ensure that the capital adequacy and financial services directives do not unfairly discriminate against the United Kingdom independent intermediary sector.

Mr. Redwood

The investment services directive and its supporting capital adequacy directive are currently under negotiation. The Government recognise the special role of independent financial intermediaries in the United Kingdom financial sector and want them to benefit as far as possible from the opportunities of the single market. However, the Government are equally concerned not to subject such firms to inappropriately high capital requirements. As the negotiations progress, I expect that a balance will have to be struck between the benefits which could flow from the European "single passport" and the burdens which could arise from the terms of the capital adequacy directive. I am keeping progress on the directives under constant review in the light of this consideration.