ABI verdict on equity capital markets: not broken but room for improvement
On 11 July 2013, the Association of British Insurers (ABI) published its report ‘Encouraging Equity Investment’ following an extensive review of the processes for initial public offerings (IPOs) and secondary offerings. The review involved interviews with a wide range of market participants, including institutional investors, investment banks, lawyers and accountants. The report comes at a time in which the London equity capital markets have been subject to close scrutiny. Last summer, the Kay report was published, which identified ‘short-termism’ issues in the equity markets and a decline in trust and confidence. The market is also eagerly anticipating the outcome of consultation paper 12/25 published last Autumn by the Financial Services Authority (replaced by the Financial Conduct Authority), which proposed various changes to tighten up the corporate governance structure of the London listing regime.
Overall, the ABI concludes that the UK equity capital markets model is ‘not fundamentally broken’ but there are certain areas that should be addressed to improve the efficiency of the route to market. As one would expect, the ABI recommendations broadly favour investors and suggest that the current process model is biased towards issuers and their advisers…
If you are registered and logged in to the site, click on the link below to read the rest of the Hogan Lovells briefing. If not, please register or sign in with your details below.
News from Hogan Lovells
News from The Lawyer
Briefings from Hogan Lovells
The new Companies Ordinance (Cap. 622), which came into effect on 3 March 2014, is a substantial rewrite of Hong Kong companies law.
Employment News — 14 April 2014: the final straw — employer entitled to take strict view in light of previous warnings
Before his dismissal, the claimant in Disotto Food Ltd v Carlos Santos for misconduct he had been given three warnings about his conduct.
Analysis from The Lawyer
Beyond the headline infrastructure projects, UK construction work is still recovering from the clobbering it took during the slump
When a firm shouts loudly about a landmark merger, as SJ Berwin did when it joined forces with King & Wood Mallesons, departures are always likely to come under the spotlight.