The final report of the Kay Review - what did you think?

The final report of the Kay Review of UK Equity Markets and Long Term Decision-Making was launched last month to a flurry of responses and critiques from across the financial industry.

Amongst the recommendations were:

  • A radical shift in the culture of investing towards a longer-term view
  • The removal of mandatory interim management statements every quarter for listed companies
  • A reduction in the number of intermediaries standing between the shareholder and the company whose stock they have invested in
  • Establishing an investors’ forum to facilitate collective engagement
  • A review by the Law Commission on the concept of fiduciary duty to address uncertainties and misunderstandings of trustees and their advisors

Several NSFM participants have been publicly quoted responding to some of the recommendations, and a useful point by point analysis from Responsible Investor is available here.

NSFM participant Stephen Davis was listed as a Friend of the Review, and NSFM Board members Keith Johnson and Frank Jan de Graaf’s paper on modernising fiduciary duty was cited in the bibliography. Many of the overarching concepts presented in NSFM’s own contribution were taken up in the final report.

As the dust settles, and Vince Cable, Secretary of State for Business, Innovation and Skills, gets down to reading a report he said “is an insightful and powerful review which describes vividly the flaws of the UK’s financial markets” we’d like to elicit your responses, as NSFM participants. In no more than five lines give us your opinion on the report – what do you applaud, what disappointed you and why? We’d like to gather responses with a view to setting up a working group with some recommendations of our own for Mr Cable regarding how to implement the review, including how to deal with missing elements.

As George Latham of WHEB Asset Management said in his blog, “…what is now required is to drive the momentum from here. There have been good initiatives around this agenda before which have quickly run into the sand and had little impact.”

Perhaps we can stop that happening this time around!

How to make your voice heard