John Purvis

John Purvis is Conservative MEP for the south of Scotland. He is the Vice Chair of the Committee on Economic and Monetary Affairs and substitute member for the Industry, Research and Energy Committee. He has a history of work in the European Parliament on financial services and on biotechnology. He also has direct financial interests in both industries.

He is a 'founding member' of the European Parliamentary Financial Services Forum a lobby group set up by the financial services industry to get close to MEPs. It is run by lobbying firm Houston Consulting.

Houston has written two 'own initiative' reports, one on financial services and one on biotech. On 17 March 2005, he made an additional declaration in the Register of members interests which disclosed that Purvis has a remunerated position as 'Partner, Life Science Capital LLP, London, England', which is of course a venture capital firm set up to fund biotech industry developments.

Register of interests

• Owner Brigton and Gilmerton Farms, St Andrews, Fife, Scotland - including rental houses
• Partner, Brigton Partners - farming
• Partner, Purvis and Company - Business Advisory
• Partner, Life Science Capital LLP, London, England - Investment Management
• Non-executive Chairman, Belgrave Capital Management Ltd - Investment Advisory
• Non-executive Director,* European Utilities Investment Trust Plc
• Non-executive Chairman,* Kingdom FM Radio Ltd, Local Commercial Radio Station

(*shareholder of company)

Conflicts of Interest

In February 2006 the Sunday Herald reported:

Purvis's alleged conflict of interest was first apparent during last year's passage of the Third Money Laundering Directive, which committed member states to combating terrorism by clamping down on illegal transactions.

The legislation requires EU members to make firms report suspicious dealings, as well as tightening the regulations on the financial vehicles used for 'dirty money' transactions, such as trusts and hedge funds, which are largely unregulated investment portfolios.

Bankers and others in the financial world were unhappy with the original draft of the directive because they felt it placed extra burdens on business.

These fears were shared by Purvis, a member of the European parliament's Economic and Monetary Affairs Committee, who last year tabled amendments, the effect of which arguably watered down the document.

His revisions, some of which were accepted, loosened disclosure requirements and tried to place fewer burdens on firms.

A minute of a January 2005 meeting of the European Parliamentary Financial Services Forum, which acts as forum for the industry, showed Purvis's unease with the general plans:

'John Purvis MEP said that while it is necessary to combat money-laundering and terrorist financing effectively, he is concerned that the methods introduced recently or being introduced risked creating a very heavy system and practical problems for both commerce and individuals.'

He also asked an oral question on how the fight against terrorism could be achieved without 'gravely impeding commercial and personal transactions'.

Other opponents of the directive ensured that one of the original proposals, which would have required anyone owning more than 10% of a trust to be identified in legal records, was amended to 25%.

Purvis's actions have caused concern because he is the non-executive chairman of Belgrave Capital Management, a financial services firm. Established in 1994, the company then became part of the Banca del Ceresio Group, a Lugano-based Swiss bank and an investor in hedge funds.

But the MEP's interest in the subject predates his proposed parliamentary amendments to the money-laundering directive. In 2004, the European parliament approved his plans for the introduction of an EU-wide 'passport' for hedge funds.

Purvis said at the time that his proposals, which have still to be adopted by member states, were about creating a 'light-handed' regulatory regime that would help the sector - 'It is vital that we encourage hedge funds into the EU'.

His role in championing the biotechnology sector is also coming under scrutiny after it emerged that he is a partner in a life sciences firm.

Purvis has long supported biotech, as in 2001 when he helped write a report that called for the industry to be given greater help from government.

In 2002, he hit out at the 'Luddite obstruction' which he believed would harm Scottish scientists and farmers, while he also said it was 'high time' for European biotech industries to be promoted.

This was followed in 2005 by the MEP becoming a partner in Life Science Capital LLP, a biotech firm set up by his son-in-law.

Purvis declared the financial interests in his parliamentary register, although he has not disclosed the amount of money he receives from the companies.

Resources

• Addition to register of members interests by John Purvis, 17 March 2005
• Register of members interests by John Purvis, 16 November 2005.