The Quoted Companies Alliance welcomed almost 300 members, friends and wider stakeholders to its Annual Conference, supported by Inspired PLC, Peel Hunt and Investors’ Chronicle.
“Anyone doubting the passion for public markets, for our smallcaps and midcaps, need only take a look around this room this morning,” James Ashton, the QCA’s CEO, said in his opening remarks.
The event was entitled “Funding Our Future”, with a focus on getting growth capital into UK equities. “That’s because the success of the companies the QCA is proud to champion is inextricably linked with the success of the UK economy,” Ashton added. “If UK capital markets want to think big, we must start small.”
In her speech, the City Minister Emma Reynolds reaffirmed the Government’s commitment to economic growth and emphasised the role of small and mid-caps in that ambition. She highlighted that a key priority for this Government was ensuring that growth companies “start, scale and list here”.
To that end, the Government’s Pensions Bill, laid before Parliament on 5 June following the outcome of the Pensions Investment Review, alongside the broader Financial Services and Growth Strategy – to be released at the Chancellor’s Mansion House speech on 15 July – were earmarked as key pillars of that goal.
Alastair King, the Lord Mayor of the City of London, provided detail on the recently agreed Mansion House Accord. Of particular note was the Lord Mayor’s commitment to convene the 17 pension fund signatories to the Accord with QCA member companies, in order to improve understanding of how to channel a portion of the Accord’s £25bn investment into Aquis and AIM stocks.
Sarah Pritchard, the Financial Conduct Authority’s Executive Director for Supervision, Policy, Competition and International, highlighted the regulator’s recently launched five-year strategy, with its focus on growth and proportionality.
“We want to use this moment of regulatory reform to build a future proof, outcomes focused system. This includes our approach to public markets,” she said.
Pritchard underscored the FCA’s work in providing greater consistency in its communications to the market including the withdrawal of some Dear CEO letters.
Stephen Welton, Chair of the British Business Bank, provided an overview of the work of the body’s role as the UK’s economic development bank supporting small companies. He confirmed that expansion of the Bank’s remit to include quoted companies was under consideration.
Richard Moriarty, CEO of the Financial Reporting Council, underlined the regulator’s work in tackling audit affordability for smaller companies and its recent update to the Stewardship Code.
He affirmed the FRC’s commitment to working towards proportionate regulation, particularly when considering the Public Interest Entity (PIE) definition and the imbalance between the reporting expectations of public and private companies of similar sizes and importance “Proportionate and smart regulation that can still serve the public interest is possible,” was the key message.
Panel Discussion: After 30 Years, Should the UK AIM Higher?
Charlie Walker, Deputy CEO at the London Stock Exchange, focused on AIM’s USP, while Katie Potts of Herald Investment lamented a diminishing investment community in the market. The proposed Global Growth Exchange was offered as a potential solution by Jon Prideaux, ex-CEO of Boku Inc. Andrew Belshaw, CEO at Gamma Communications, underlined the importance of AIM to Gamma’s progression from AIM to the FTSE250, yet noted its current challenges.
A key theme to emerge from the discussion was this: any growth market needs to match committed investors with good quality growth companies.
Panel Discussion: Reviving Retail: Creating More Buzz Around Shares For All
The need for better financial education and the importance of the Advice/Guidance Boundary Review were talking points raised by Heather Benjamin, Chair of ShareSoc and Neil Stevens of Fintel.
Callum Anderson, Labour MP, and Bim Afolami, the ex-City Minister, both agreed that there were multiple challenges to increasing retail investment. Some straightforward solutions were highlighted by the panel: simplify ISAs, put the £300bn of cash savings to more productive use through equity investment and get the public excited about the public markets through greater promotion and awareness.
Panel Discussion: Is ESG Good for Growth, As Well As The Planet?
At a time of increasing questions being asked over ESG, the panel agreed that it still mattered for companies and investors alike. Inspired PLC’s Dr Michelle De Jongh and Dr Filipe Morais from Henley Business School both emphasised the need to avoid a one-size-fits-all approach for ESG reporting.
Manju Malhotra, NED at Smiths News, explained that a well-run company needs to incorporate good governance and ‘E’ and ‘S’ considerations into its business model in the interests of long-term growth.
Sid Chand Lall, fund manager at Canaccord Genuity, concurred and stated that investors continue to view ESG-factors as a yardstick with which to measure companies.
