Investment Research Review

The HM Treasury has published a press statement to announce the launch of a review of the investment research market in UK led by Rachel Kent, an independent person not-related to the government. The review is part of the so-called Edinburgh Reform Measures (announced by the Chancellor of the Exchequer Jeremy Hunt at an industry meeting in Edinburgh) to bring about growth in the financial services sector to make the UK „one of the most open, dynamic and competitive financial services hubs in the world“ (please refer to EventID 18802 for more information on the reforms).
Investment research is highly significant to investors to make informed decisions about their (future) investments. It helps to assess a company’s business model, its performance relative to the market and other investment alternatives, and its risk profile. A lack of investment research often leads to reduced investor interest, making it harder for firms to raise capital.
Therefore, the Treasury is now launching this review with the following key objectives which are also set out in the Treasury’s Policy paper: Terms of Reference – Investment Research Review:
– assess the current level, type, and quality of research offered in UK;
– assess the perception of the current status quo;
– assess how the UK compares to other countries as far as the performance of investment research is concerned;
– assess the demand of investors for such research;
– assess how levels of research relate to the attractiveness of the UK financial market and issuers willingness to raise capital in UK
To conduct the review, a large range of financial market participants will be consulted / interviewed, ranging from investors, including asset managers, to issuers, to trading venues and academics. A first report is expected within three months after the launch.