FCA to consider market structure changes to boost ‘patient capital’

first_imgThe UK’s financial markets regulator is seeking feedback on market structure and regulation to assess whether they reinforce short-termism.The Financial Conduct Authority (FCA) published a discussion paper on primary capital markets in the UK and how they can most effectively meet the needs of issuers and investors.One focus of the paper is potential barriers to the provision of capital for growth, especially for early-stage science and technology companies. The FCA said it “would be useful” to explore the extent to which current market structures and regulation reinforce a short-term focus in issuers and investors, thereby hindering the provision of “patient capital”.The FCA said that discussions with “pre-IPO” companies indicated a need for technical changes to be made to listing rules, but also “raised the question of whether a more fundamental reassessment might be valuable, focusing particularly on ways in which different forms of primary market structure and regulation might better support scale-up and patient capital, which are particularly crucial for early-stage science and technology companies”. It cited concerns that the UK’s primary equity markets were proving less effective at providing a means for companies to raise capital for further growth and development.  The regulator said there have been significant changes in secondary capital markets, such as a shift towards algorithmic trading strategies and the separation of primary from secondary markets. These changes were seen by some as having eroded the effectiveness of the primary markets and having led to a focus on short-term trading rather than long-term investment considerations, the FCA said.Market regulation is seen by some as contributing to such a short-term focus, with “trends in market structure and market regulation […] seen by some to be mutually reinforcing”, it added.However, it also said that these views were not shared by all, and that “some stakeholders point to the Financial Reporting Council’s Stewardship Code and the establishment of the Investor Forum as recent improvements to the effectiveness of primary markets in supporting a more patient approach”.“Nonetheless, we are keen in this DP [Discussion Paper] to explore some of the themes that have emerged in this area,” it added.The FCA also asked for feedback as to whether alternative market structures could support “a more patient, long-term approach”, such as a transitional market to sit between fully private and fully public markets.The regulator asked long-term investors to indicate how they value different aspects of the current public equity market model, such as corporate transparency, investor stewardship, corporate governance requirements, or the ability to trade.The FCA also asked for views on whether there is a role for a UK primary debt multilateral trading facility, to encourage more overseas companies to raise debt finance in the UK.The FCA’s discussion paper can be found here.last_img read more

Investigation continues in death of man at Circle K

first_imgTaylorsville, IN—Bartholomew County Joint Narcotics Enforcement Team is investigating the death of a Columbus man found in a vehicle at the Circle K in Taylorsville on Friday.A full forensic autopsy and toxicology tests were ordered for Christopher A. Purdy, 33, Columbus, after he was pronounced dead at Columbus Regional Hospital on Friday, according to Clayton Nolting, the Bartholomew County Coroner.Bartholomew County Sheriff’s Department deputies were notified Friday of an intoxicated driver on southbound I-65.The witness said the female driver, later identified as Emily A. Clarence, 27, Columbus, appeared to be nodding off and at times was swerving on and off the interstate.Clarence exited the interstate at Taylorsville and went to the Circle K, where deputies attempted to speak with her. Clarence appeared to be falling asleep and had a cellphone in her hand.A male passenger, later identified as Purdy, was lying on the car seat, was pale, and had blue spots on his back where his T-shirt was pulled up.Deputies determined he was not breathing and called for an ambulance while administering two doses of Narcan and began administering CPR. Purdy was later pronounced dead at the hospital by the coroner’s office.When Clarence was questioned, it is alleged that she says she had gone to Greenwood to pick up Purdy to bring him back to Columbus and thought he was overdosing, but that he “would come out of it” as he had done at other times.Due to the deputies’ observations, Clarence was arrested on a charge of operating a vehicle while intoxicated.Nolting said the 2019 overdose totals so far this year are nine confirmed deaths, with 10 possible in Bartholomew County.last_img read more