March 2025

We often hear about the regulatory pressures on boards, are things really getting harder or do you think it’s just part of the job?

I empathise with boards, over the last few years they have had to contend with a significant number of unprecedented challenges, general uncertainty, and on top of all of that, compounding regulatory pressures. Regulatory pressure on boards, and more broadly across the capital markets industry, has certainly been an intensifying trend over the past couple of decades.

Whilst regulatory pressure is the price that a public company pays for access to a broader pool of capital, there’s a tipping point where regulatory pressures outweigh the benefits attached to capital access, and I think that sits at the nub of boardroom debate today. I think it is fair to say boards are feeling the regulatory pressure more acutely because of the current phase in the market cycle.

If you contextualise why we are where we are, it wasn’t that long ago when the UK’s gold-plated governance and regulatory framework was a calling card for global capital. However, we are a long way from that today and it is well publicised that the government has tasked the regulators with a growth and competitiveness agenda, acknowledgment in and of itself that the balance had tipped too far.

The silver lining is that there’s clear momentum across both government and industry to drive regulatory reform, whilst also focusing on how to solve the demand conundrum. The challenges facing capital markets are both cyclical and structural, and we can see that the structural issues—including around regulation—are being actively addressed. The link between pensions, investment, and economic growth is now part of mainstream discussions.

Whilst there is clearly a top down mandate and progress is being made, it isn’t going to be overnight, and there is a long way to go to effect a much needed cultural shift. We are still contending with a heavily entrenched risk off mentality that we, the UK, has become so accustomed to. Boards, industry stakeholders and government all have a role to play here in evolving market practice, we need a common sense approach, alongside long term vision.

You host a lot of events for board members, what is one of the most thought provoking discussions you've had recently? Have there been any insights that have really stuck with you that you think our readers might find interesting?

We run monthly non-executive workshops, that cover topical boardroom issues and this programme has afforded us the opportunity to get to know a broad spectrum of our non- executive director community, which has been a privilege. Their generosity of time, willingness to engage on new ideas, and constructive challenge has had a really positive impact on the way we approach and have evolved our client service strategy.

To the question in hand, whilst conversations take many different guises, too often they are anchored around capital market malaise. One conversation that really stood out to me recently was with the CEO of a UK technology company, previously on AIM. The company in question rapidly scaled over a decade, following which it was acquired by private equity, to drive the businesses next phase of growth.

He told me about how he created and grew his businesses in his back yard, 3 miles from where his Mum still lives, crediting capital markets as the reason the business was able to scale to the significant size that it is today and make such sizeable investment into UK technology. Ultimately, it was one of the many AIM success stories that the media never seems to talk about!

Sometimes, we lose sight of what capital markets are, why we need them and why we should care, and this conversation was a real leveller in that respect. Public markets provide management teams with a different route to accessing growth and follow on capital. Having this alternative option is important.

Whilst the conversation reflected on how private equity ownership was the right place for the business today, he said he would never discount the business coming back to market (the return of the re-IPO!) Indeed, the fundamental co-dependency and interconnectivity between public and private markets is so often overlooked.

If you could host a seminar on any emerging issues boards AREN’T talking about yet, but should be, what would it be?

I will contextualise this by saying that Cavendish advises UK growth companies across private and public markets. We regularly run dual track processes for our clients, which involves us running a co-terminous private equity/ trade sale process alongside an IPO process.

With that in mind, I want to do some technical analysis around the risk profile (legal, regulatory and reputational) and remuneration parameters regarding being on the board of a private versus public company.

I think there is a perception that there is a higher risk profile attached to being a public company director, certainly in the context of standard remuneration packages, but I would hazard a guess that after unpicking those responsibilities and objectively assessing remuneration, the gap might be closer than one might have thought.

What has been the most interesting thing you’ve read or watched recently?

Torsten Bell’s, Great Britain? following a ‘you must read this’ recommendation from our Chair Lisa Gordon.

The book provides a good steer on how Torsten, our (fairly new) Minister for Pensions, approaches pensions and investment in the context of a stagnant economy. Perhaps even a helpful indicator of the direction of travel we can expect to see within the Pension Bill, expected to hit parliament in the coming months (ahead of the Summer recess). Pension reform will be a fundamental facet in solving the UK’s chronic underinvestment in its own domestic economy, and directly correlated to (under)investment within UK equities (a subject close to many of our hearts).

As he notes within the book, the test isn't achieving perfection but demonstrating that things are starting to get better rather than worse – and maintaining that momentum over time.

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Please note: The views and opinions expressed in this interview are those of the individual financial professional(s) and do not necessarily reflect the views or opinions of Alma Strategic. These insights are provided for informational purposes only and may not be relevant at the time of reading, as market conditions can change rapidly. The information provided should not be construed as investment advice or a recommendation to buy, sell, or hold any financial product or security. Individuals should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Alma Strategic disclaims any responsibility for the accuracy or completeness of the information provided in this interview.