Treasury Committee To Probe Private Equity, Competition In Banking

by Robin Pilgrim, LawAndTax-News.com, London

08 March 2007

The UK Treasury's Select Committee on Tuesday announced that it expects to launch new probes into Private Equity Funds, into competition in banking, and into the future of free banking.

Having taken note in particular of the Financial Services Authority’s Discussion Paper, entitled ‘Private equity: a discussion of risk and regulatory engagement’, and the creation by the British Venture Capital Association of a working group to look into disclosure in the private equity industry, the Treasury Committee revealed that it will undertake an inquiry into Private Equity Funds.

The BVCA last week announced that it will form a working group under the Chairmanship of Sir David Walker, in order to examine ways in which levels of disclosure in companies backed by the UK private equity industry could be improved.

The high level industry working group will work towards producing a voluntary code addressing the transparency of the industry and levels of disclosure.

Meanwhile, commenting with regard to competition in banking and the future of free banking, the Treasury Committee also stated on Tuesday that it intends to undertake an inquiry into Competition in banking and the future of ‘free’ banking, seven years after the publication of Don Cruickshank’s review of Competition in UK Banking on 20 March 2000.

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