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Cable appoints Kay to head up market review
VINCE Cable has asked economist John Kay to review Britain’s stock markets, as the business secretary steps up his attack on corporate short termism.
Kay, formerly head of the Institute for Fiscal Studies, will chair the equity market review, which reports in 2012.
As part of the review, Kay will look at how to get institutional investors more involved in the running of the companies in which they hold shares in order to minimise “short-termism”.
Cable will use a speech to the Association of British Insurers later today to announce the review and Kay’s appointment.
“The financial crisis has raised justifiable concerns about whether there are systemic flaws in the way companies are owned and managed in the UK,” he is expected to say.