Overview

The UK Office of Fair Trading (the "OFT") today announced that it will
conduct a review of competition in equity underwriting and associated
services, and is currently seeking views from interested parties – to be
submitted by 9 July – on its proposed scope. The study will be undertaken
in response to concerns raised by corporate users of the market, and the
OFT is proposing to "take a focused look at rights issues and other types
of equity-raising by the 350 largest UK public companies, to consider
whether the users' concerns are justified". The OFT is also considering
whether to include "aspects of capital-raising by other companies whose
securities are traded on the Alternative Investment Market or Initial Public
Offerings".