Overview

The UK’s Department for Business Innovation & Skills has issued a consultation paper, entitled “A long-term focus for corporate Britain”, on perceived short-termism and market failures in the UK equity markets.

Vince Cable states in the foreword that he wishes to examine whether the system in which UK companies and their shareholders interact promotes long-term growth or undermines it.

The tenor of the paper suggests that further legislative or regulatory reform in this respect may be expected during the life of this Government.

Given the potential consequences, this briefing from Nabarro gives an overview of the debate, and urges ‘corporate Britain’ to contribute to the debate before the deadline for responses on 14 January.