The Kay Review of UK Equity Markets and Long-Term Decision Making
Open date: 15 Sep 2011
Closing date: 18 Nov 2011
On 22 June 2011, the Secretary of State for Business, Vince Cable, announced that Professor John Kay would undertake an independent review to examine investment in UK equity markets and its impact on the long-term performance and governance of UK quoted companies. On 15th September 2011, Professor Kay launched the review’s call for evidence which builds on the previously published terms of reference, and set out a range of issues and questions on which we sought evidence. The review published its Interim Report, summarising the responses to the call for evidence on 29 February 2012. The review will publish its Final Report in summer 2012.
The review’s principal focus is to ask how well equity markets are achieving their core purposes:
to enhance the performance of UK companies by facilitating investment and enabling effective governance and decision making in support of long-term profitability and growth; and to enable investors to benefit from this corporate activity in the form of returns from equity investment.
It is considering to what extent equity market participants are excessively focused on short-term outcomes to the detriment of these core purposes, and if so, what actions might be taken to address this. It is examining the incentives, motivations and timescales of all participants in the equity markets – from end investors, through pension funds, advisers, fund managers, and the markets, to company boards – and the relationships between them.
Full details of the review are available at: the Kay Review page
The consultation closed on Friday 18 November 2011
Copies of the responses to the call for evidence are available here.
Download the consultation