A Response to the DWP Consultation on Enabling Investment in Productive Finance

Long Finance (January 2022), 34 pages

34 Pages Posted: 16 Mar 2022

See all articles by Iain Clacher

Iain Clacher

University of Leeds - Faculty of Business

Con Keating

European Federation of Financial Analysts Societies

Date Written: January 01, 2022

Abstract

This hard hitting response to the UK Government consultation on On Enabling Investment In Productive Finance comes just a few months after the modification of the charge cap, and concerns a proposal to exempt certain classes of illiquid private investments from the DC charge cap.

The authors make plain their belief that the title of this consultation is misleading to the extent that it is concerned solely with illiquid securities and the DC charge cap. In this response the investment merits of illiquid securities and their potential use in DC pension arrangements are considered, although several other important public policy aspects, such as consideration of the tax cost of these partnership arrangements and the economic consequences of material increases in the indebtedness of the corporate sector are not covered in this response as they are out of scope.

Keywords: Investment, productive finance, DC pensions, UK government

JEL Classification: H00, H55

Suggested Citation

Clacher, Iain and Keating, Con, A Response to the DWP Consultation on Enabling Investment in Productive Finance (January 01, 2022). Long Finance (January 2022), 34 pages, Available at SSRN: https://ssrn.com/abstract=4014456

Iain Clacher (Contact Author)

University of Leeds - Faculty of Business ( email )

Leeds LS2 9JT
United Kingdom

Con Keating

European Federation of Financial Analysts Societies ( email )

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