HC Deb 28 November 1990 vol 181 c424W
Mr. Favell

To ask the Secretary of State for Trade and Industry if he will make a statement on the progress made in securing an exemption from the European Community investment services directive.

Mr. Redwood

Most member states favour the exclusion of solicitors and other members of the professions from the scope of the investment services directive—ISD. None the less, there are difficult issues still to be resolved if we are to secure the maximum possible benefit for members of the professions, as for all investment businesses, under the ISD. We have to take into account both the attitude of the other member states and the level of minimum capital requirements that would be imposed under the capital adequacy directive—CAD—on all those covered by the ISD. These requirements are higher than the United Kingdom would wish. The issue remains open and the Government are in close touch with the professional bodies on the progress of the negotiations.

Mr. Fraser

To ask the Secretary of State for Trade and Industry what view is taken by the Government on the proposed European investment services directive and its requirements for lawyers giving investment advice to carry substantial capital; and if he will make a statement.

Mr. Redwood

Most member states favour the exclusion of solicitors and other members of the professions from the scope of the investment services directive—ISD. None the less, there are difficult issues still to be resolved if we are to secure the maximum possible benefit for members of the professions, as for all investment businesses, under the ISD. We have to take into account both the attitude of the other member states and the level of minimum capital requirements that would be imposed under the capital adequacy directive—CAD—on all those covered by the ISD. These requirements are higher than the United Kingdom would wish. The issue remains open and the Government are in close touch with the professional bodies on the progress of the negotiations. There is a balance to be struck over who is covered by the ISD and what capital they need under it and the CAD.