Kay Review: Next Steps

Professor Kay issued his final report on the function and operation of equity markets in July 2012 (see our October update).  The Government issued its response¹ to the Kay Review in the autumn and the BIS Select Committee is now considering the manner in which Professor Kay's recommendations should be implemented.

Delivering the recommendations of Professor Kay: but did he miss a point?

Professor Kay's report contained 17 recommendations, primarily focussed on behaviours through the investment chain.  Accordingly, the recommendations do not present a need for any major new legislative instrument. It is healthy and constructive that the BIS Select Committee is considering at this stage how the improvements suggested by Professor Kay might be delivered, recognising that the role of the legislature and Government is limited.