§ Mr. WhittingdaleTo ask the Chancellor of the Exchequer (1) what the Government's policy is on the proposed EC prospectus directive; and if he will make a statement; [12978]
(2) what representations he has received about the proposed EC Prospectus Directive; and if he will make a statement; [12977]
(3) what estimate he has made of the total cost to business of the proposed EC Prospectus Directive; and if he will make a statement; [12979]
(4) pursuant to the answer of 1 November 2001, Official Report, column 798W, on the EC Prospectus Directive, if he will quantify the likely increase in the disclosure costs of small and medium sized companies. [13218]
§ Ruth KellyAn effective single passport for issuers was identified as a priority for completion of the single European market in financial services at the Lisbon Council in spring 2000. The UK Government's policy is that the prospectus directive should achieve this goal; and that it meets the aim of reducing the cost of raising capital for EU companies, especially SMEs.
489WThe directive, as currently drafted, could lead to an increase in the disclosure costs of issuers, and an increase in the cost to UK businesses of accessing capital by issuing securities. However, negotiations are at an early stage, and there are a number of issues that are as yet unclear, such as the directive's relationship with other existing directives, and the way that its provisions will be used. As the negotiations continue, the likely impact of the directive will be kept under close review.
HM Treasury has actively sought the views of interested parties, has received a significant number of submissions from the UK financial services industry, and is engaging with industry practitioners on an ongoing basis through round—table consultation meetings.