New chair appointed to drive forward Edinburgh Reforms' investment research review
A new chair has been tasked to lead a wide-ranging review into the UK’s research and investment landscape - which helps attract some of the largest companies in the world.
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A new review into the UK’s research and investment landscape will formally kick off on Monday (13 March) - City Minister Andrew Griffith is expected to announce tomorrow in a speech at FIX trading
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Rachel Kent, senior partner in financial services at Hogan Lovells, has been announced as chair of the Review.
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Move comes just weeks before Financial Services and Markets Bill expected to receive Royal Assent – enabling us to deliver more of the Edinburgh Reforms
The review, which was first announced as part of the government’s Edinburgh Reforms, will formally kick off on Monday 13th March. It seeks to develop concrete steps the government can take to enhance London’s status as Europe’s leading listings destination, and only second globally.
Rachel Kent, an expert and senior financial services partner at leading global law firm Hogan Lovells, has been tasked by City Minister Andrew Griffith MP with leading the review, and has been asked to report within three months.
Speaking at the FIX trading conference, City Minister Andrew Griffith is expected to say:
Research matters - and the right depth and breadth of investment research is vital to ensure markets operate well and companies obtain the valuations they deserve.
I am therefore pleased to announce City expert, Hogan Lovells Partner Rachel Kent, will spearhead the Investment Research Review.
With her experience and knowledge of the sector, as well as the regulatory framework, I have every confidence Rachel will do a fantastic job at speedily convening the sector, looking at the evidence and finding solutions to improve the UK market for investment research.
I look forward to receiving her recommendations.
Investment research provides investors with information that allows them to understand a company’s business model, performance, and risks, and therefore to assess its value as an investment.
Concerns have been raised about the quality and quantity of investment research produced in the UK as compared to other jurisdictions - particularly for certain sectors like tech and life sciences - and that this could undermine valuations and therefore the attractiveness of the UK as a place to list and make it harder for companies to access private capital.
Through the review, the UK is seeking to identify and address some of these concerns, to ensure London maintains its unique attractiveness as a listing’s destination.
Attracting some of the largest companies in the world to list in the UK supports a broader ecosystem providing high-skill, and high-paying jobs for Brits up and down the country – widening opportunity and increasing revenues for the public purse.
Addressing these issues will help to deliver on the government’s plan to grow the economy and become a leading technology superpower.
Further information
Past reviews by both Lord Hill and Ron Kalifa have argued there is a perception that the US has a cluster of expert analysts – in particular specialising in high growth sectors such as tech and life sciences – which contributes to a valuation gap between the US and the UK.
Some market participants and representative groups have specifically pointed to the EU derived MiFID II unbundling rules as a potential source of decline of investment research in the UK. The review will seek evidence as to whether these rules may have contributed to the decline in the quality and quantity of UK research.
The review will also provide recommendations on how to improve the research landscape in the UK with the aim of making London a more attractive location for companies looking to list and access private capital.
Rachel’s bio
Rachel is a senior partner in the financial services regulatory team at Hogan Lovells. She has advised a number of the largest banks, asset managers, insurers, and financial market infrastructures on a variety of financial services issues. Rachel is also a client relationship partner for the Government and leads the work for HM Treasury following Hogan Lovell’s appointment as their main legal advisor on financial services. Alongside her main job, she sits on the TheCityUK’s International Regulatory Strategy Group (IRSG) where she specialises on international access and competitiveness.
Publications:
As Chair of the IRSG Brexit Working Group on international access and competitiveness, Rachel was the lead author on three of their post-Brexit reports.
In 2020 she drafted the Regulation chapter of HM Treasury’s FinTech Strategic Review (‘FSR’) commissioned by Ron Kalifa.
Rachel regularly publishes papers on Hogan Lovells website about regulatory reform, such as a legal explanation of the Edinburgh Reforms package in December