§ Mr. BercowTo ask the Chancellor of the Exchequer (1) what assessment he has made of the impact which the proposed EC Prospectus Directive will have on(a) the listing cost of small and medium size companies and (b) the availability of capital to growing businesses in the UK; [7734]
(2) what discussions he has had with representatives of the Alternative Investment Market and other representatives of the UK financial services industry regarding the EC Prospectus Directive; [7741]
(3) what measures he will take to reduce the impact of the EC Prospectus Directive on the Alternative Investment Market. [7740]
§ 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 are committed to ensuring that the Prospectus Directive meets this goal; and that it meets the aim of reducing the cost of raising capital for EU companies, including SMEs and growing businesses.
The Directive, as currently drafted, could lead to an increase in the disclosure costs of small and medium size companies (SMEs), and the cost of accessing capital by SMEs. However, negotiations are at an early stage, and there are a number of issues that are as yet unclear, such as its relationship with other existing directives, and the way that its provisions will be used.
HM Treasury has actively sought the views of interested parties, and is engaging with industry practitioners (including representatives of the Alternative Investment Market) through round-table consultation meetings. HM Treasury officials and Ministers are in close touch with the European Commission, the Belgian presidency, the European Parliament, and other member states of this and other directives which affect the financial services industry.