§ Sir John StanleyTo ask the Secretary of State for Trade and Industry what he expects to be the content of the proposed investment services directive; and when he expects that directive to be published.
§ Mr. RedwoodThe draft investment services directive sets key standards for the authorisation of investment firms within the EC. It provides a "single passport" for an investment firm so that, once authorised in its home state, it can carry on investment business throughout the EC without the need for further authorisation.
The directive contains provisions relating to the prudential supervision of investment firms. It sets out the responsibilities of home and host member states. Most conduct of business rules remain a matter for host state authorities. The directive contains provisions liberalising access to stock exchanges and other organised securities markets in the EC. It provides for co-operation beween regulators and also contains reciprocity provisions covering relations with third countries.
The Commission submitted a text of the directive to the Council of Ministers on 3 January 1989, which was published in Official Journal No. C43 on 22 February 1989. The Commission submitted a revised text to the Council on 12 February 1990. This text has not yet been published in the Official Journal.