Individual Savings Accounts

Lord Davies of Oldham Excerpts

Monday 20th December 2010 Lords Chamber

[Lord Sassoon]

My Lords, without wishing at all to cast aspersions on the quality of AIM companies, it is nevertheless the fact that you can come to the AIM market without a trading record and with no minimum number of shares in public hands. Also, the UK Listing Authority does not usually vet the prospectus of AIM-listed companies and there is no minimum capitalisation requirement. Therefore, there are different requirements and obligations on AIM companies from those that apply to listed companies.

[Lord Davies of Oldham]

My Lords, will the Minister recognise that, with his reply, he has disappointed a wide range of opinion in the House, including— to complete the position—Her Majesty’s Official Opposition? He will know that earlier this year we were looking positively towards this issue. We would have thought that the present Government would adopt something more than just a straightforward negative stance on a situation where it is quite clear that, with SIPPs being able to invest in these companies, there is a good case that ISA investors should be able to as well.

[Lord Sassoon]

I did not want to be controversial in the week running up to the holidays. I pointed out that ISAs were introduced by the last Government and that they have been a successful channel for savings. I gently point out, however, that the last Government had from 1999 to May 2010 if they had wanted to make AIM shares eligible for ISAs, but they chose—rightly, I think—not to do so. We have not taken a decade to mull over this, but we have thought about it carefully in the last few months.