Walker report shows transparency issues linger

Alice Murray
05 December 2014

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The Walker Guidelines Monitoring Group’s (GMG) 2014 report shows issues remain around publication and data reporting requirements.

The Walker Guidelines were established in November 2007 by Sir David Walker to ensure adequacy and transparency in the private equity industry.

The GMG's latest report found that all 25 firms included in the sample achieved a good or excellent level of disclosure. However, a number of companies failed to meet the publication and data provisions requirements.

There were some positive developments, including an improvement in the level of disclosure when it comes to strategy, market environment and principal risks. Unfortunately, disclosures concerning environmental matters, as well as social and community issues were weaker.

Of the 25 portfolio companies in the sample group, only 20 provided audited reports and accounts on their websites. The GMG has outlined its intention to reinforce its focus on making accounts readily accessible on company websites and will be monitoring this more closely over the next year.

The GMG uses the FTSE 350 as its benchmark, and in this context, GMG chairman Nick Land said in a statement that "the results for 2014 are pleasing". He added: "Looking to the year ahead, portfolio companies will need to amplify their efforts when complying with the latest edition of the guidelines. These were revised due to the introduction of the strategic report in narrative reporting in the UK and will raise the bar for compliance."