By Marcus Leach

Professor John Kay has 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.

“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," Professor Kay said.

"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.”

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