OFT urges greater pressure on underwriting fees

Companies lack experience to hold banks to account on costs

Thursday 27 January 2011 at 14:51

The Office of Fair Trading on Thursday urged companies and institutional shareholders to apply greater pressure on equity underwriting fees after finding that the market lacks effective competition on price.

The OFT's equity underwriting market study, published on Thursday, found there had been a significant increase in the fees paid to investment banks since the onset of the financial crisis.