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:
"Two quite interesting papers have recently been published, related to the questions at the core of NSFM’s inquiry: what causes financial instability, and what can be done to address it, both as a regulatory matter and as a matter of behavioral change. The first paper, entitled "Too Much Finance", is by three IMF economists, Jean-Louis Arcan, Enrico Berkes and Ugo Panizza.
Institutional investors — including executives at pension funds, foundations, endowments and sovereign wealth funds — as well as investment managers and investment consultants are being surveyed.
"Given the near universal desire for charismatic leadership and the ideological obsession with shareholder value maximization, we shouldn’t be too surprised that the normal corporate governance structures and processes (e.g., Board oversight of CEO, Investor oversight of Board) have been pretty ineffective in containing executive failure. Arguably, they have encouraged it." —Raj Thamotheram