News Release issued by
the COI News Distribution Service on 15 September 2011
Professor John Kay
today launched a consultation exercise to inform his examination
of UK equity markets and long-term decision making, publishing a
call for evidence paper that identifies the key questions the
review will explore.
Business Secretary Vince Cable asked Professor Kay to lead an
independent review into UK equity markets and the role they play
in supporting corporate performance. The review will consider
growing concerns that short-term incentives and pressures may be
having a detrimental effect on the way that companies are owned
and managed in the UK.
Speaking at a launch event at the National Association of Pension
Funds, Professor Kay said:
“We begin this review with one, and only one, preconception: that
the purposes of equity markets in this country are to enhance the
performance of British business and to provide good returns to
savers and pensioners. Equity markets contribute to our prosperity
in our multiple roles – as employees of businesses, as consumers
of their products, as savers, as prospective pensioners whose
standard of living depends on investment returns. Everything we
will do in this review follows from the perspective of how these
markets contribute to jobs, growth and financial security.”
Professor Kay urged interested parties to respond to the call for
evidence, saying:
“This is an excellent opportunity for all interested parties to
help us make the UK more competitive, and to benefit from serving
the long-term interests of British businesses and the economy. I
hope that everyone takes the chance to read the discussion paper
and submit evidence.”
The call for evidence, which is open until the 18 November, sets
out to examine the mechanisms of corporate control and
accountability provided by UK equity markets, and their impact on
the long-term competitive performance of UK businesses.
Professor Kay is supported by an Advisory Board comprising Sir
John Rose, James Anderson and Chris Hitchen. The review will
publish an interim report next spring, setting out its preliminary
findings and exploring possible actions that might be taken. There
will then be a second consultation period, after which Professor
Kay will make recommendations to the Secretary of State in a final
report in the summer of 2012.
Notes to editors:
1. The call for evidence for the Kay Review can be found on the
BIS website here: www.bis.gsi.gov.uk
2. This independent Review was announced in June by Business
Secretary, Vince Cable to investigate the way investors,
shareholders, regulators and the boards of UK-listed companies can
best serve the long-term interests of British businesses and the economy.
3. Sir John Rose, former Chief Executive of Rolls-Royce plc;
James Anderson, Partner and Manager at Baillie Gifford; and Chris
Hitchen, Chief Executive of the Railways Pension Trustee Company
and Chairman of the Pensions Quality Mark, are also on the Board
and will help Professor Kay shape his recommendations
4. BIS's online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom
for more information.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Olivia Campbell
Phone: 020 7215 5363
olivia.campbell@bis.gsi.gov.uk