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NEWS ROUND-UP |
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Consultation on the EU Services Directive |
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BERR has issued a public consultation on the implementation of the EU Directive on Services in the Internal Market (EC Directive 2006/123). The main aim of the Directive is to open up the EU market for the services sector. The ultimate goal is to create a single market in this area. In order to achieve this, the Directive seeks to facilitate the cross-border provision of services by a number of means, including making it easier for businesses to set up in other members states. Opening up the EU market should be beneficial to member states, boosting their economies, creating new business opportunities and giving customers more choice. BERR’s consultation explains the requirements imposed by the Directive and sets out how the UK will satisfy its obligations. The consultation focuses on four main issues arising out of the Directive: » the creation of a single point of contact so that businesses based in the EU can acquire information about the relevant rules and procedures in the UK and can apply for any necessary licences or authorisations from their home country; » administrative co-operation between the relevant authorities in the different member states; » how to make information about the requirements as to the quality of services and customer protection available to customers in their own country; and » the requirement on members states to review their domestic legislation and practices in this area to ensure that they do not hamper the creation of a single market. BERR indicates that this process is already under way, and few amendments appear to be required. The consultation paper can be found at: http://www.berr.gov.uk/files/file42207.pdf. Responses are invited by 11 February 2008, and the government anticipates being able to publish its response by 11 May 2008. The Directive has to be implemented in the UK by 28 December 2009. |
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EU company law update See CLM: ¶3199+ |
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The Council of the European Union has adopted the Commission’s communication on its plans for simplifying company law, accounting and auditing (see Company Law Memo 2007 Newsletter, Issue 5). In doing so, it urged the Commission to act on the responses to its consultation on this issue quickly (the consultation closed in October). The Council wants to see, by the end of 2008, proposals for reducing any unnecessary administrative and cost burdens revealed by the Commission’s review of the law. It is particularly keen for the law to be updated to enable companies to take full advantage of developments in IT, such as electronic signatures. |
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New guidance for private equity firms published See CLM: ¶4800+ |
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Earlier this year, private equity found itself under scrutiny from the Treasury, politicians and the press (see Issue 4). One of the reasons for this attention was the review of the industry by Sir David Walker on behalf of the British Venture Capital & Private Equity Association (BVCA). This review has now come to an end, and new guidance for private equity firms and their portfolio companies has been published. The guidance focuses on the need for transparency, so it sets out various requirements on firms and the companies they finance to disclose information about their financial position and structure. These measures should address some of the criticism levelled at the industry for its lack of openness. For example, the guidance calls on each private equity firm to: » publish an outline of its internal structure, specifically including information on the leadership of the firm in the UK and the UK companies within its portfolio; » follow established guidelines in reporting to its limited partners and valuing its assets; » provide information to the BVCA to enable it to monitor the industry effectively; and » communicate quickly and efficiently with employees of their portfolio companies. The portfolio companies themselves will also be expected to publish regular information about its financial position, including the identity of its private equity funders and a review akin to quoted companies’ business reviews that looks at factors affecting the company’s future developments as well as various commercial issues. Private equity firms are expected to comply with the guidance. If they do not comply with any aspect of it, they must specifically state why they have not done so. The guidance will be monitored and updated by a group set up by the BVCA, headed by Sir Mike Rake, Chairman of BT. Sir David Walker recommends that the BVCA strengthens its position as industry body, for example by analysing the economic impact of the industry so that it becomes the authoritative source of information on private equity. The guidance can be found at: http://walkerworkinggroup.com/sites/10051/files/wwg_report_final.pdf. |