§ Mrs. Curtis-ThomasTo ask the Chancellor of the Exchequer what assessment he has made of the barriers to institutional and retail investment in smaller quoted companies. [40247]
§ Dawn PrimaroloA number of assessments have been made. The Government commissioned the Myners Review in 2000 to look at factors that may be distorting the investment decision-making of institutions. The Review reported in March 2001 and found weaknesses in the investment process that affected all quoted companies, including smaller quoted companies. In addition, a working group on smaller quoted companies was set up in August 1998 and reported to the Treasury in October 1998. The Department of Trade and Industry also participated in two tranches of work dealing with SQC issues with findings from both published in 1999.
471W
§ Mrs. Curtis-ThomasTo ask the Chancellor of the Exchequer if a platform to encourage a wider shareholder base actively interested in investing in smaller quoted companies has been established. [40254]
§ Dawn PrimaroloIn 1995 the London stock exchange created the Alternative Investment Market (AIM). This has helped to create a focus to encourage investor interest in smaller quoted companies with growth potential. Over 850 companies have used AIM since it was created. The Government have taken further steps to encourage investment in smaller quoted companies by introducing attractive capital gains tax taper relief for investors investing in AIM.