The decision by the Office of Fair Trading not to refer the issue of rising underwriting fees to the Competition Commission was welcomed by investment banks this morning, reigniting a heated debate between the buyside and sellside on whether banks are overcharging companies for helping them raise capital.

The OFT this morning published a report acknowledging a lack of competition in the market for underwriting equity issuances, but suggesting it is the responsibility of companies and their shareholders rather than regulators to bring about change.