§ 102. Mr. BellTo ask the Secretary of State for Trade and Industry what steps he will be taking to ensure that the British unit trust investment sector will not be put at a competitive disadvantage after 1992 compared to other European countries' industries.
§ Mr. RedwoodThe European directive on UCITS (undertakings for collective investments in transferable securities) came into force on 1 October 1989. The directive provides for cross-border trade in UCITS, including most classes of United Kingdom authorised unit trusts. On 1 October 1990 my Department submitted a report to the Trade and Industry Select Committee on the operation and impact of the UCITS directive. As yet there is little evidence of any cross-border trade, but the report identifies the principal factors which will affect the long-term impact of the directive. The Government will continue, in conjunction with the unit trust industry, to monitor the competitiveness of the United Kingdom unit trust in Europe. Copies of the report have been laid in the Libraries of the House.