The task force, chaired by Tim Breedon, CEO, Legal & General, was established by the Department for Business, Innovation and Skills to examine structural and behavioural barriers to the development of alternative debt markets for businesses of all sizes in the UK. The ACT participated in the initiative as part of a working group contributing to the report. As indicated in the report the ACT will soon establish a further working group to consider measures to promote a UK private placement market. Producing a form of standardised documentation but with adaptable clauses to suit any individual specificities could be a significant help to new users of the placement market. The ACT believes it is vital for a much wider range of companies operating in the real economy to have access to non-bank lending to keep the wheels of economic growth oiled. By bringing together potential investors, borrowers and other market professionals we hope over time to reduce actual or perceived barriers to the private placement market’s more vigorous development. We also think streamlining the provision and analysis of credit information to be another area that could be fruitfully investigated. Colin Tyler, Chief Executive of the ACT, commented:
We agree with the findings of the Breedon Report that there is great potential for the UK to establish a more vigorous private placement market. Realistically, it will take time to develop this market. By comparison, we should remember that the huge US private placement market has been in existence for many decades, borne of that country’s historical state-by-state bank fragmentation. Company treasurers have a key part to play and we look forward to making our contribution towards improving the structure of the UK business environment.
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Evan DeBarra or Sophia Morrell HeadLand Consultancy T: +44 (0)207 367 5222 E: smorrell@headlandconsultancy.co.uk; edebarra@headlandconsultancy.co.uk