§ Mr. IrvineTo ask the Secretary of State for Trade and Industry when he expects to be able to publish proposals for changes in the law governing offers of unlisted securities.
§ Mr. RedwoodA consultative document is being published today outlining proposals for implementing part V of the Financial Services Act 1986 and European Community directive 89/298 concerning the prospectus to be published when transferable securities are offered to the public. I have arranged for a copy to be placed in the Library of the House.
The proposals are designed to reshape and simplify the arrangements for the issue of securities, while ensuring that investors continue to be sufficiently protected against deceptive, misleading and unscrupulous practices. The proposals will bring about a significant degree of deregulation by narrowing the range of offers which require the publication of a full prospectus. They will require prospectuses and other documents offering securities to be pertinent, and will enable companies based 342W in the United Kingdom to secure mutual recognition of prospectuses, to be vetted by the International Stock Exchange, as well as of listing particulars. Where prospectuses are not required, approval of the offer documents by a person authorised under the Financial Services Act, subject to the rules of the SIB, will be needed. My aim is to simplify the arrangements, and then to ensure that they are rigorously enforced.