City fees are too high, says Byers
Thursday 25 February 1999
Mr Byers - who yesterday published the Monopolies and Mergers Commission report on share underwriting - said there was evidence of a complex monopoly in sub-underwriting, the process via which lead underwriters pass on their risk to other investors.
This had been found by the MMC to operate against the public interest, Mr Byers said. In particular, the practice of charging standard fees for sub-underwriting resulted in "issuing companies being charged higher fees than otherwise".
However, he decided against implementing more draconian measures - such as capping fees - suggested as potential remedies by the MMC in its interim findings last summer.
Instead, Mr Byers will implement MMC proposals aimed at improving advice given by the City to quoted companies and at making companies more accountable to their shareholders.
To the relief of City institutions, Mr Byers did not announce plans to tamper with pre-emption rights - the rights of existing shareholders to have first refusal on any new issues.
The MMC also found evidence of a complex monopoly in lead underwriting, but concluded that it did not operate against the public interest.
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
- 3 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Paralysed man Darek Fidyka walks again after treatment by British doctors on brink of 'cure'
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Oscar de la Renta dead: Legendary US fashion designer dies after long cancer battle aged 82
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Lord Freud hangs on as MPs of all parties 'call for his head' over disability comments
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...