Vol. 416 No. 2
69 Mr. J. Bruton asked the Minister for Finance his views on a report (details supplied) to the effect that the United Kingdom plan to put a brake on the development of the European Single Market during its EC Presidency in the latter half of 1992 with particular regard to an investment services directive; and if he will outline Ireland's position in regard to the investment services directive.
I am aware of the report in the Financial Times referred to by the Deputy. I am also aware that the UK Minister for Corporate Affairs, Mr. John Redwood, subsequently clarified the UK position on the Investment Services Directive in a letter to that newspaper. He stated that the UK have always welcomed and encouraged proposals that promote more cross-border trade and open up Community markets to companies and individuals from other member states. The UK, he said, consistently supported a market-opening investment services directive and would support a compromise to secure such a directive.
The draft directive aims to extend into the investment services area the approach already contained in the Second Banking Directive, enabling a firm to operate in any member state of the Community on the basis of authorisation by its home authority. Such a directive is desirable in the interest of the general regulation of investment services, of providing market opportunities, and also in relation to safeguarding the interest of the smaller or non-institutional investor. The draft is still under discussion. Modifications are being sought to take account of market structures in smaller member states such as Ireland.
