Derek McDowell (Labour)

The point I am trying to make is that we are talking about the exception rather than the rule.

The Minister of State is correct, section 44 provides that various warnings are to be given to potential investors to the effect that past performance may not be a realistic guide to future performance, simulated performance may not be a reliable guide to future performance and so on and so forth. After a while these things become meaningless. We hear them every day on the radio. I am not altogether sure people pay a great deal of attention to them.

When people are acquiring securities or shares they should know there is a measure of risk but I am not convinced that including these pro forma warnings actually adds much to the information provided. At least the directive sets out the requirements under the EU directive and also gives a comeback against the various individuals responsible for drawing up a prospectus. A greater degree of protection is provided to members of the public subscribing to securities. If we are, in effect, excluding most offers from the requirement to produce a prospectus then we are back to these pro forma warnings.