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The review will strengthen the UK further as a place for growing innovative firms to obtain the long-term ‘patient’ finance that they need to scale up, building on current best practices.
The review will consider all aspects of the financial system affecting the provision of long-term finance to growing innovative firms. It will in particular:
- consider the availability of long-term finance for growing innovative firms looking to scale up
- identify the long-term root causes affecting the availability of long-term finance for growing innovative firms, including any barriers that investors may face in providing long-term finance
- review international best practices to inform recommendations for the UK market
- consider the role of market practice and market norms in facilitating investment in long-term finance
- assess what changes in government policy, if any, are needed to support the expansion of long-term capital for growing innovative firms
When considering barriers that investors may face, the review will consider any influence that affects investment in long-term finance to a greater degree than other forms of business investment. This includes the effectiveness of existing support and relevant influences that have a broader impact beyond long-term finance.
The review will complement and draw upon work being done by the regulators to consider how regulation affects investors’ decisions. It will draw on the discussion document that will be led by the FCA around the structure of the UK’s listed markets.
The review will begin work in January 2017. It will publish a substantive consultation document in the spring. Its final recommendations will be presented to the Chancellor ahead of the Autumn Budget 2017.
The review will be led by HM Treasury and it will report to the Chancellor. It will work closely with the Department for Business, Energy and Industrial Strategy and the British Business Bank.
There will be an industry panel drawn from leading investors and entrepreneurs.This panel will be chaired by Sir Damon Buffini. Its role will be to provide input, advice and challenge to the HMT Review team. Its members will act in a personal capacity rather than represent the views of their firm/organisation. All executive decisions of the Review will be the responsibility of HM Treasury.