The Office of Fair Trading (OFT) is to undertake a market study into equity underwriting and associated services so that it can effectively advise the Government on its general policy towards wholesale financial services. According to previous research there is general dissatisfaction with equity underwriting and associated services currently on offer. The 2009 market was worth £2 billion in fees as companies raised an estimated £70 billion of equity capital in the UK.

The market study will take a focused look at rights issues and other types of equity-raising by the 350 largest UK public companies, to consider whether users' concerns are justified. Clive Maxwell, OFT Senior Director of Services, said:

'Economic growth and productivity rely on companies being able to raise capital efficiently for investment. We plan to study the efficiency of the equity underwriting market and identify any areas for improvement. Our study will also help us to advise the Government in its wider thinking about wholesale financial markets.