Governments should withdraw tax exemption rights from charities, pension schemes and other investors if they fail to hold their investments for more than three years, according to a new plan for improving the capital markets for the benefit of society.

The plan, drawn up by a former asset manager and a senior academic at the London School of Economics, calls on sovereign wealth funds and other "giant funds" to lead a revolution in the financial markets. They claim that, over the long term, this will benefit these investors and "contribute to the social goal of promoting more efficient, stable and less exploitative capital markets".