Extract from Budget debate (Commons): Shell - Mar 11

Mr John Baron (Basildon and Billericay) (Con):...I would briefly like to raise the ongoing issue of the cost disclosure regime for investment companies, otherwise known as investment trusts, which is hindering investment in key sectors. I draw the House’s attention to my entry in the Register of Members’ Financial Interests. For those who do not know, investment companies, otherwise known as investment trusts, are like a Shell or a Glaxo, but instead of running oil or selling clothes and food, they actually manage investments. They are quite important to the UK economy: nearly 40% of all FTSE 250 companies are investment trusts and four of the FTSE 100 companies are investment trusts. However, because of a quirk in EU retained law, UK investment trusts are having to roll up their corporate and investment management costs when disclosing a cost figure on the European MiFID—markets in financial instruments directive—template feed used by the industry. This double accounting makes investment trusts look very expensive. It does not happen in other countries, and the cost that other companies in other jurisdictions put on the EMT feed, or their equivalent, is zero.,,