The Investor Forum has been developed by industry practitioners with the core objective of creating long-term value.
In 2011, at the request of the Rt Hon Dr Vince Cable, Secretary of State for Business, Innovation and Skills, the UK Government commissioned a review of UK equity markets to be undertaken by the economist Prof. John Kay. In July 2012, the Final Report of his Review was published.
Kay Review obstacles to long-term engagement:
- A decline of trust and misalignment of incentives throughout the equity investment chain.
- Fragmentation has reduced the incentives for engagement and the level of control.
- Internationalisation of ownership with 54% of UK market now owned by international investors.
- Perceived regulatory barriers inhibit collective engagement.
- A narrow engagement focus has crowded out discussion on fundamental drivers of long-term strategy and operational execution.
Taken together, this has contributed to an industry structure which too often favours exit over voice.