Aberdeen's Gilbert: The unintended consequences of the 'Big Bang' 30 years on

Contributed to market short-termism

Tom Eckett
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Former PM Thatcher and ex-Chancellor Lawson oversaw the deregulation of the UK securities market in 1986. Photos: Rob Bogaerts/Anefo/Financial Times/Flickr
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Former PM Thatcher and ex-Chancellor Lawson oversaw the deregulation of the UK securities market in 1986. Photos: Rob Bogaerts/Anefo/Financial Times/Flickr

The 'Big Bang' reforms which saw the deregulation of the UK securities market three decades ago, has contributed to the current short-term thinking of investors, according to Aberdeen's CEO Martin Gilbert.

The 'Big Bang' major reforms were implemented by prime minister Margaret Thatcher and Chancellor Nigel Lawson in the 1980s. It saw the removal of fixed commission charges and the requirement that the roles of broker and agent should be kept separate, and led to the London Stock Exchange becoming a private listed company. Three decades after the event, Martin Gilbert, founder and CEO of Aberdeen Asset Management, said the "unintended consequences" include encouraging short-termism among the investment community. AIC advises 'layered' approach to fund regulation in post-Brexit UK ...

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