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New regulations to help smaller brokers compete in London IPO market

Wed, 13th Apr 2016 09:04

(ShareCast News) - Smaller brokers and investors could all find it easier to compete in the UK's initial public offer (IPO) market in future, according to new investment banking proposals put forward by the City regulator.To remedy several issues spied during its study into the investment and corporate banking market, the Financial Conduct Authority (FCA) has suggested a raft of new regulations, including a ban on cross-selling clauses imposed by the larger investment banks and a new effort to prevent conflicts of interest in share placings.The FCA has also called for feedback on suggested improvements to the way in which information is provided to investors during the IPO process.Although larger clients may feeling well served by larger investment banks who can offer a universal banking model that combines investment and corporate banking services, the FCA found that cross-selling clauses often made it harder for smaller banks that do not offer lending facilities to compete for IPOs and other primary market services.Saying it "noted widespread use of contractual clauses that purport to limit clients' choice of providers on future transactions", the FCA has now called for an end to their use. The regulator also said it would supervise a "targeted group" of investment banks after found evidence that some of them sought to reward favoured investor clients when allocating shares in an IPO, which is seen as a potential conflict of interests.Christopher Woolard, director of strategy and competition at the FCA, said: "These markets are a cornerstone of the real economy, helping companies raise capital for investment and expansion. Our study shows that many investment and corporate banking clients are getting a service they want, but we have also identified some areas where improvements could be made. "Overall this is a package of proportionate measures intended to remove potentially anti-competitive practices."In addition, the Woolard said the IPO discussion paper was aimed at changing the sequence of the flotation process "to make the market work better by giving investors the right information at the right time".Currently, retail investors waiting for a newcomer's prospectus will face a "blackout period", typically of 14 days, after research on the issuer is first published by the banks supporting the IPO."This means that investors only have access to an important source of information late in the process. In addition, analysts unconnected with the IPO generally lack access to the management of the issuer, leaving them with little information on which to base their independent research," the regulator said. Two new models have been put forward: a requirement for bank analysts to delay the release of any research until after the prospectus is published, and a requirement to invite analysts from unconnected banks and independent research providers to any meetings with management."These options have been presented to stimulate debate," the FCA said.
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8 Nov 2013 14:58

UK lawmakers to quiz bankers over Royal Mail valuation row

LONDON, Nov 8 (Reuters) - British lawmakers investigating whether the sale of shares in the Royal Mail postal service was correctly valued have summoned bankers from across the City of London to give evidence, a government source said on Friday. An 69 percent rise in the firm's share price

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30 Sep 2013 13:15

GLI Finance Swings To Profit; Seeks To Raises Up To GBP6.6M To Fund Lending

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24 Sep 2013 10:10

Panmure Gordon Pretax Profits Fall 84% On Restructuring Costs

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24 Sep 2013 09:35

UPDATE 1-Panmure Gordon sees "meatier" second half as IPO activity picks up

* Advised on 3 IPOs in H1 * Expects increased IPO activity in H2 * H1 pretax profit plummets 84 percent * Sees lower H2 costs By Richa Naidu Sept 24 (Reuters) - Panmure Gordon & Co Plc said it expected a "meatier" second half as IPO activity in Britain picks up and t

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24 Sep 2013 08:03

CORRECTED-Steep costs drag on Panmure Gordon's profit

(Corrects paragraph 3 to say profit decreased not increased) Sept 24 (Reuters) - British investment bank Panmure Gordon & Co Plc's first-half profit fell 84 percent, hit by administrative costs associated with a restructuring program it undertook last year. The 137-year-old bank, whic

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24 Sep 2013 07:42

Panmure Gordon's half-way figures hit by volatile trading conditions

Panmure Gordon's first half operating profit fell to 0.3m pounds from last year's 1.2m pounds as the stockbroker invested in a restructuring. Increased administrative costs including the acquisition of new teams shaved off operating profits. Commission and trading income of £5.2m was flat, reflec

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21 Mar 2013 11:47

UPDATE 2-Panmure Gordon sees more UK share listings in 2013

* Posts 0.6 mln pound pretax profit on continuing operations * Sees IPOs as area of expansion in 2013 * Remains cautious on economic outlook By Alice Baghdjian LONDON, March 21 (Reuters) - British investment bank Panmure Gordon said it expected business from new share list

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26 Sep 2012 11:39

Panmure Gordon turnaround on track

The investment bank and stockbroker, Panmure Gordon, has had a decent morning on the markets after revealing a turnaround in profits following last year's cost cutting programme. Earnings from continuing operations were £1.2m in the six months to the end of June with every month during the period y

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26 Jun 2012 16:10

Oakly Capital Investments non-exec buys 200,000 shares

Laurence Blackall, a non-executive director of Oakley Capital Investments, a Bermuda-based investment firm, has purchased 200,000 ordinary shares at 118p a pop. The £236,000 purchase is currently the director's only holding in the firm, equal to around 0.2% of the total voting rights. At the end

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24 Apr 2012 08:34

Small caps round-up: Brainspark, Top Level Domain Holdings, Globo

The management of Brainspark, the AIM-listed investment company, has sought to reassure investors nothing is wrong after its share price fell over 30% in the last month. The company's directors said they knew of no reason for the decline. They added that day to day operations continued as normal and

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30 Sep 2011 14:20

Christie chief exec tops up

The chief executive of surveying, valuation and rent review group Christie, David Rugg, has upped his stake in the company, spending £60,000 on shares. He took 100,000 at 60p a time and now has about 2.6m or 10.3% of the company. Christie works with the retail, leisure and care sectors and has off

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17 Mar 2011 16:49

London close: Strong end to a strong day

London's blue chips were strong all day and boosted late on by a strong start in the US where the Dow notched up a triple-digit gain in quick time. For once, investors overlooked the ongoing bad news on the Japanese earthquake and turmoil in the Arab world to hunt out a few bargains. Heritage Oi

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17 Mar 2011 13:57

London afternoon: Shares kick on as US opens higher

Share prices kicked on over the lunchtime session, boosted by a firm start on Wall Street, where the Dow has notched up a triple-digit gain in quick time. Though the focus remains on the aftermath of the Japanese earthquake and any response to the turbulence it has caused in the financial markets

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17 Mar 2011 07:57

Panmure Gordon confident after tough year

Stockbroker and investment bank Panmure Gordon posted a loss in 2010, though things improved in the second half and the company says it enters 2011 with a promising pipeline. Panmure posted an adjusted pre-tax loss of £4.26m for the year, bigger than the £3.08m deficit the previous year, on net re

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5 Jan 2011 08:16

Panmure Gordon boosted by US recovery

Stockbroker and investment bank Panmure Gordon has seen a significant improvement in its operating performance in the second half of the year. "Both our UK and US businesses generated operating profits in this six months, in spite of continued challenging trading conditions," it adds. UK investme

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