Treasury Committee press notice no.36

Session 2006-07, 20 March 2007


Treasury Committee announces terms of reference for its inquiry into Private Equity

The Treasury Committee has decided to undertake work under the theme of ‘Transparency in Financial Markets and the Structure of UK Plc’. As part of its work under this theme, the Committee has decided to undertake an inquiry into private equity funds. The Committee invites written evidence on this inquiry by Wednesday 9 May. Further guidance on the submission of written evidence is set out in Note 2 below.

As part of this inquiry into private equity funds, the Committee would welcome evidence on the following three areas:

The regulatory environment

»Is the current regulatory regime for private equity funds suitable?

»Is there sufficient transparency on the activities, objectives and structure of private equity funds for all relevant interested parties?

»Has there been evidence of excessive leverage in recent transactions and what systemic risks arise in consequence?

» What are the effects of the current corporate status of private equity funds, including both their domicile and ownership structure?

Taxation

»Is the current taxation regime for private equity funds and investee firms appropriate?

The economic context

»Are developments in the environment and structure of private equity affecting investments in the long-term?

»To what factors, including the current macroeconomic context and position in the economic cycle, is the current rise of private equity attributable?

»What are the economic advantages and disadvantages of a firm being owned by private equity funds as opposed to being publicly listed?


NOTES:
1. Committee Membership is as follows: Rt Hon John McFall (Chairman), Mr Colin Breed, Jim Cousins, Angela Eagle, Mr Michael Fallon (Sub-Committee Chairman), Mr David Gauke, Ms Sally Keeble, Mr Andrew Love, Kerry McCarthy, Mr George Mudie, Mr Brooks Newmark, John Thurso, Mr Mark Todd, Peter Viggers.
2. Written evidence should be in Word or rich text format-not PDF format-and sent by e-mail to [email protected] The body of the e-mail must include a contact name, telephone number and postal address. The e-mail should also make clear who the submission is from. The deadline is Wednesday 9 May at 5.00 pm.
Submissions should address the terms of reference. They should be in the format of a self-contained memorandum and should not exceed 5,000 words. Paragraphs should be numbered for ease of reference, and the document must include an executive summary. Further guidance on the submission of evidence can be found at www.parliament.uk/parliamentary_committees/witness.cfm.
Submissions should be original work, not previously published or circulated elsewhere. Once submitted, your submission becomes the property of the Committee and no public use should be made of it unless you have first obtained permission from the Clerk of the Committee. Please bear in mind that Committees are not able to investigate individual cases.
The Committee normally, though not always, chooses to publish the written evidence it receives, either by printing the evidence, publishing it on the internet or by making it publicly available through the Parliamentary Archives. If there is any information you believe to be sensitive you should highlight it and explain what harm you believe would result from its disclosure; the Committee will take this into account in deciding whether to publish or further disclose the evidence.
For data protection purposes, it would be helpful if individuals wishing to submit written evidence send their contact details in a covering letter. You should be aware that there may be circumstances in which the House of Commons will be required to communicate information to third parties on request, in order to comply with its obligations under the Freedom of Information Act 2000.