Daily Mail



1 CURB THE DEBT: Before selling a business, private equity firms must provide assurances from an independen­t auditor that its debt levels and pension fund solvency are sustainabl­e.

2 PUBLISH PERFORMANC­E DATA: Private equity must be required to make disclosure­s on debt and performanc­e, as well as any fee payments.

3 END TAX PERKS: Some of the rewards received by private equity partners are taxed as capital gains, not income, resulting in a lower tax rate. This must stop.

4 DISCLOSE BOSSES’ PAY: Firms should be obliged to reveal the annual rewards of their top partners.

5 CURB SHORT-TERMISM: Private equity should be banned from extracting cash through dividends or fees for the first two years. Paying dividends with borrowed cash should be forbidden.

6 CHECKS ON DISPOSALS: An independen­t auditor should have to certify that major asset sales will not damage the business and are in its best interest.

7 PUNISH POOR PRACTICE: An independen­t register of private equity practition­ers should be set up with powers to punish and strike off individual­s for malpractic­e.

8 PROTECT SENSITIVE SECTORS: Tougher scrutiny by ministers is needed when private equity is involved in sensitive areas such as defence.

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