The NAPF welcome the Committee’s undertaking of this inquiry into the Kay Review of UK Equity Markets and Long-Term Decision Making. This is an important issue and one which is of considerable interest to our members.

The NAPF believes that equity markets must work more effectively in the long-term interests of investors and savers, who need to be able to see that they are getting value for money.

The NAPF is very supportive of attempts to consider the vital issue of how to structure the market such that it incentivises and rewards long-termism. We believe that what is needed is a regulatory environment which is more supportive of longer term risk-taking by pension fund investors. In addition the positive trend towards greater transparency around investment fees and charges needs to be maintained. Our research indicates that pension funds are embracing their stewardship responsibilities. However, others in the investment chain have yet to embrace their responsibilities in this area.

By endorsing Professor Kay’s recommendations, the Government is giving a clear direction of travel, which will help pension funds play their part in reducing a short‐term culture in UK companies and markets - the NAPF will endeavour to play its part in achieving this.

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