Corporate Broker Part 19 Jan 2008 08:08
Dealing with the City
The closest single advisor relationship maintained by a listed company in the UK is that of his corporate broker. The role of corporate broker is unique to the UK and dates from the historic Stock Exchange requirement that every listed company appoint a “sponsor” to act as intermediary between the company, its shareholders and the Stock Exchange.
Today, the role centres upon providing advice, insight and expertise through strong, stable relationships with broking clients and their shareholders alike. This advice has historically centred on market related matters, but corporate broking is now recognised as both the market advocate for their clients and as a trusted adviser on all corporate issues. Linked closely to both the equity capital markets and corporate finance arenas, corporate broking operates on the confidential side of the Chinese wall.
The corporate brokers’ role is to give the best possible understanding of the markets and what they are saying and feeling, to help communicate an investment story to the investors, and to help build a high quality investor base. They will also support the issuer in providing appropriate advisory and capital transaction support.