And so we need a new regime of financial promotion that is technologically neutral and can quickly adapt to future changes. As part of the Financial Services and Markets Bill, the Treasury two weeks ago published a consultation document on the financial promotion regime. I urge you to look at our proposals - and let us know what you think. This is an important element of the information flow between investors and companies - and so it is important we get it right. My previous department, the DTI, have sponsored a report which sets out best practice for better communication between SQCs and institutional investors.
Institutional issues Improving the flow of information between company and investor is key.
However, this is just one aspect of a broader system, not all of which always operates as well as it might. Just as we want to see effective communications and accountability between companies and their shareholders, we want to see similarly effective relationships higher up the chain - between fund managers and the institutions which employ them, and ultimately with the investors in those institutions themselves. It is through these relationships that the incentives of those making investment decisions are set and their attitudes determined. The Government thinks that there may be room for improvement here. These developments would support, and go with the grain of rational, commercial decision making.