In our newsletter last July, we commented on the launch of the Kay review of UK equity markets and long-term decision making. On 29 February, Professor Kay published his interim report.
The objective of the Kay Review is to examine the way investors, shareholders, regulators and the boards of UK quoted companies can best serve the long-term interests of British business and the economy. Its implementation followed concerns that short-term incentives and pressures can have a damaging effect on the way companies are owned and managed in the UK.
The Interim Report is based on the submissions received in response to the call for evidence. Whilst its comments reflect the content of those submissions, the report makes it clear that they do not represent even provisional conclusions, and are not recommendations. Rather, they are being are put forward to permit a wider public discussion of the issues which the Review will be considering in its further deliberations.
Nonetheless, it is interesting to note that the proposals for reform so far received bear on many different areas of policy, such as:
- the governance of companies,
- the ways in which economic activities are measured,
- the functioning of markets and
- the structure of the savings market.
To date, submissions have been received from over 80 respondents. Those with new evidence to submit should do so before 27 April 2012. The full text of the interim report is available from the Consultations section of the BIS website, or by clicking here.