A hard line for soft commissions?

Article Abstract:

Money managers split transactions on the London Stock Exchange (LSE) into two parts, as payment to an agency for execution of an order and as payment for services to enhance the operation of funds under control, the so-called soft commission. Soft commission brokers argue that they are charging for agency execution and are providing services asked for by fund managers. Brokers also believe soft commissions are a natural consequence of the unbundled pricing of services. However, soft commission LSE transactions are objected to by traditional full service brokers, who believe soft commissions are undermining already thin profit margins. Regulators also do not like the commissions because they are who are concerned brokers may engage in churning portfolios to generate commissions.

Stockbrokers, Commissions (Compensation), Commissions (Fees)

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The road to USM is mostly uphill

Article Abstract:

A study of 225 small companies that joined the Unlisted Securities Market (USM) of the London Stock Exchange is discussed. The Stock Exchange requires all listing companies to have a sponsoring organization, typically either a brokerage firm or a merchant bank, and a firm of reporting accountants. The study focuses on the attitudes of company managers toward the financial advisers who helped them obtain a listing on the USM. Most of the companies used the same advisers while going public that they had used while operating as private companies. Two of the most common complaints from companies who were dissatisfied with their advisers were cost over-runs and lack of rapport.

Analysis, Accounting and auditing, Going public (Securities), Initial public offerings, Unlisted Securities Market

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Trends in the corporate sector

Article Abstract:

'Quoted UK plc' is a model created from information about 150 listed British companies. Pre-tax profits, earnings per share, and dividends per share have grown at an annual rate of more than 11 percent since 1981. These figures reflect the improved strength of British corporations following the wave of restructuring that took place earlier in the decade. British productivity improved at a compound annual rate of six percent between 1982 and 1985.

United Kingdom, Research, Economic aspects, Corporations, British

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