A government sponsored review into UK equity markets set up in 2011 and led by Professor John Kay.
The review was established to ask how well equity markets are achieving the following core purposes:
- Enhancing the performance of UK companies by facilitating investment and enabling effective governance and decision making in support of long-term profitability and growth; and
- Enabling investors to benefit from this corporate activity in the form of returns from equity investment.
The review was designed assess to what extent equity market participants are excessively focused on short-term outcomes to the detriment of the core purposes (1. and 2. noted above) and if so, what actions should be taken to address this problem.
It therefore examines the incentives, motivations and timescales of the following participants in the equity markets – end investors, pension funds, advisers, fund managers, the market and company boards – and also the relationships between them.
The Kay Report, published in 2012 was welcomed, by the UK government in its response of the same year.
Implementation of the recommendations continues to be monitored.