Issue 2 • summer 2014
WMA JOURNAL Working for the Investment Community & their Clients
WSOC
The return of Sid and personal share ownership in the UK Many of us will remember the 1980s and the various privatisations that allowed ordinary retail investors to own esteemed companies such as BT, British Gas and British Airways.
Y
ou may also remember the popular ‘Tell Sid’ advertising campaign when British Gas privatised in 1986. While these days Sid may not be as prominent as he once was, share ownership is still a central and important part of promoting a long-term savings culture, and, more widely, growth and enterprise in the UK. The Wider Share Ownership Council is a new initiative from the WMA that has been launched with the aim of encouraging personal share ownership and investing for all. Through the WSOC, we aim to raise the profile of widespread investment in shares and address issues that have the potential to help or hinder that purpose. It is important that retail investors are not drowned out by the voice of institutional investors. Retail investors should be afforded the opportunity to buy shares when any 16 WMA JOURNAL
company goes to market with an Initial Public Offering (IPO). The WSOC will also work to highlight the Alternative Investment Market (AIM) as an important market to retail investors. The most recent figures from the Office for National Statistics (ONS) show that UK individuals directly owned 10.7% of shares traded on the London Stock Exchange in addition to large amounts held for them in pension funds. The WSOC hopes to make people more aware of the opportunities in investing and encourage greater financial education across the UK by ensuring Britons learn from a young age how to look after their money from cradle to grave. Our launch event in June saw over 100 people in attendance at the East Wintergarden in Canary Wharf to hear from keynote speakers Conservative MP, John Redwood and former Director General of the CBI, Lord Digby Jones. Both made passionate cases as to why wider and deeper share ownership is not only good for the individual, but good for the economy as whole.
We must remember that individual investors are typically not speculators, but take a long-term interest in a company’s behaviour, adding an extra layer of accountability. Following the success of last year’s Royal Mail float and the recent surge in companies looking to list, today’s WSOC launch sends out a strong message to a new generation of shareholders. In the heart of the City, home to some of the most powerful institutions in the world, here is an initiative, born to empower the individual investor. The launch was a great success and our key messages were communicated to the diverse audience. The Wider Share Ownership Council was created not only to promote sensible investment in shares, but to ensure investment is not hindered by regulation, operational, fiscal or economic issues. The launch event was a fantastic start to the WSOC, but like all new initiatives, the real work begins now. Tim May Chief Executive, WMA www.thewma.co.uk
NEW LOGO TO COME
No responsibility for loss to any person acting or refraining from acting as a result of any material contained in this publication can be accepted by the WMA, the author, publisher or printer. The views expressed by individual contributors are not necessarily those of the Association. Company limited by guarantee. Registered in England and Wales. No 2991400. VAT registration 675 1363 26. Published for the WMA by WordWide London. Copyright WMA 2014.
22 City Road Finsbury Square London EC1Y 2AJ Tel: +44 (0)20 7448 7100 Fax: +44 (0)20 7638 4636 www.thewma.co.uk Twitter: @wma_uk Members: enquiries@thewma.co.uk Non-members: info@thewma.co.uk