ICAEW raises concerns over private equity proposals

News Article - 20 August 2008
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Plans to improve transparency and disclosure in private equity were welcomed by the Institute of Chartered Accountants in England and Wales (ICAEW) yesterday.

However it raised concerns over the risk of driving away talent and equity capital from the UK at a crucially competitive time.

"The challenging political climate, the tightening of markets and access to capital means that the industry faces very real commercial pressures," explained chief executive of the organisation Michael Izza.

Not enough private equity companies were complying to the proposals, said the ICAEW. It also called for comments on why private equity companies were to be subjected to greater transparency whereas other companies in the private sector were not.

The concerns follow Sir David Walker's review on private equity companies in February 2007 during which a set of voluntary guidelines to enhance reporting was proposed.

The Association of Investment Companies also recently welcomed disclosure and transparency guidelines but raised similar concerns over why private equity funds should be singled out.

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