To ask the Chancellor of the Exchequer what progress has been made on legislation to allow the introduction of open-ended investment companies.

Following informal consultations with the unit trust industry and others, the Treasury intends to publish later this year a consultation document on the proposed structure of onshore open-ended investment companies. This will discuss proposals for regulations under section 2(2) of the European Communities Act 1972 to permit, as a first step, the introduction of open-ended investment companies which fulfil the requirements of EC Council directive 85/611—the UCITS directive.