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Kay Review report: Government response

4 November 2013

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Today, the Business, Innovation and Skills Committee is publishing the Government Response to the Committee’s Third Report of Session 2013–14, The Kay Review of UK Equity Markets and Long-term Decision Making.

Commenting on the Government Response, Adrian Bailey MP, Chair of the Business, Innovation and Skills Committee, said:

"I am pleased that the Government recognises the need to play an active role in implementing the recommendations of the Kay Review, and note that it has not ruled out legislative and regulatory measures to bring about change.  In a number of areas, however, the Government appears to reject our recommendations on how it can drive reform.  Warm words must be backed up by action if progress is not forthcoming.

The 12 years of inaction following the Myners Review is proof enough that cultural change will not happen without a catalyst.  The Government must be willing to provide that catalyst and pick up a regulatory stick if necessary.
 
The Committee will watch this area closely and will want to see evidence of significant progress by the time the Government’s progress report is published in 2014."