Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 17th of July 2018
May 19, 2010

ABI supports investigation into rights issue fees

by Gill Montia

Story link: ABI supports investigation into rights issue fees

The Association of British Insurers has pledged its support to the Institutional Investor Council, a new body to be set up by the Institutional Shareholders’ Committee (ISC).

The ISC is a forum that allows the UK’s institutional shareholding community to exchange views and, on occasion, coordinate their activities in support of the interests of UK investors.

The new Committee will investigate the fees charged by investment banks for underwriting rights issues and various advisory roles.

The news comes in the same week that Prudential published details of its record breaking £14.5 billion rights issue which, according to a report in The Independent, will cost £680 million in fees to banks and other advisors.

The Office of Fair Trading is also reported to be considering an investigation into the level of competition among banks that advise in mergers and acquisitions and underwrite share and bond issues.

In March, Vince Cable, now Business Secretary in the new coalition government, suggested that a “magic circle” of City firms have been stifling competition by shutting their rivals out of the biggest deals.

 

News posted:



Related stories to ABI supports investigation into rights issue fees: