RegulationCorporate GovernanceGovernance shake-up leaves private equity firms reeling

Governance shake-up leaves private equity firms reeling

Private equity firms may have to disclose the huge risks they run on debt and complicated tax positions under rules outlined this week

city of london

Sir David Walker unveiled new governance rules for the embattled industry on
Tuesday, forcing private equity to produce ‘business reviews’.

Advisers suggested that the most awkward aspect of the business reviews for
private equity would surround their disclosure of risks, which must be fully
explained in such documents.

With firms taking on massive debt to finance deals, and often disagreeing
with tax authorities on the interpretation of tax rules, such information may
well form a significant part of the new disclosures.

The rules may also simply hand an advantage to ever more secretive
businesses, advisers have argued.

The reviews could prove cumbersome, involving disclosure of environment,
social and community work, among other things. Other private businesses, such as
those owned by Sir Richard Branson and Sir Philip Green, are exempt from
disclosing this information.

Read more at
www.walkerworkinggroup.com

Related Articles

Corporate governance: staying ahead in accountancy

Corporate Governance Corporate governance: staying ahead in accountancy

3m Alia Shoaib, Reporter
One in 20 audit firms quit as market evolves

Audit One in 20 audit firms quit as market evolves

1y Kevin Reed, Writer
Colin: #EURef bankers a problem

Business Regulation Colin: #EURef bankers a problem

1y Taking Stock
PwC and Deloitte chiefs sign Remain letter

Business Regulation PwC and Deloitte chiefs sign Remain letter

1y Kevin Reed, Writer
Leader: Audit competition drives change, not necessarily quality

Accounting Firms Leader: Audit competition drives change, not necessarily quality

2y Kevin Reed, Writer
EU audit reform to open up £10bn market for firms

Accounting Firms EU audit reform to open up £10bn market for firms

2y Richard Crump, Writer
Best Practice: Saffery Champness managing partner Rob Elliott

Accounting Firms Best Practice: Saffery Champness managing partner Rob Elliott

2y Calum Fuller, Reporter
Standard Life Investments opposes EY's appointment as Shell auditors at AGM

Accounting Firms Standard Life Investments opposes EY's appointment as Shell auditors at AGM

2y Richard Crump, Writer