The announcement by the Business Secretary, Vince Cable, that the Government is to conduct a review of the way that the UK’s equity markets work has been greeted with a degree of scepticism by a leading business group.
The Government review is to look at several areas where it is thought improvements can be made in the way that investments are made in companies.
These include ensuring that the timescales over which investment risks and rewards are considered best match the interests of companies; strengthening the engagement between institutional investors and companies; boosting transparency; assessing the legal duties and responsibilities of asset ownership; and judging the impact of increasingly fragmented share ownership.
It is not clear what a further review of these issues will uncover. What is needed right now is a period of stability in corporate policy making, not further uncertainty.