Unlocking funds in defined benefit pension schemes for UK investment could help to grow UK markets, according to stockbrokers.
The Brokers Perception Survey from SEC Newgate asked 60 stockbrokers, from 15 investment banks, what the government could do to strengthen the UK capital markets.
Of this group, 93 per cent said money in defined benefit schemes going into UK equity would help.
While 87 per cent said they would like to see incentives to encourage companies to list in the UK.
And 85 per cent said lowering CGT for UK investments would help, as would incentivising asset managers to invest in UK equities through tax breaks.
Bob Huxford, head of the public markets and IPO advisory team at SEC Newgate, said there is a “critical opportunity to improve the competitiveness of the UK’s capital markets” in tomorrow’s (November 26) Budget.
He said: “Our report highlights a strong consensus among investment banking professionals on the reforms they believe would have the greatest impact on encouraging UK investment and listings.
“These include unlocking capital from defined benefit pension schemes; providing tax incentives for domestic investment; reducing CGT and abolishing stamp duty.
“Together, these could bolster IPO activity and encourage broader market participation from a wider pool of both UK and global investors.”
tara.o’connor@ft.com
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