Following Sir David Walker's February 2007 review of private equity companies, the Institute of Chartered Accountants in England and Wales (ICAEW) has welcomed the proposals for greater disclosure and transparency.
The organisation did ask for the reasons that privately funded companies were singled out be considered. It also raised concerns that not enough of the businesses involved were complying with the proposals for it to be effective.
Chief executive of ICAEW Michael Izza commented that UK businesses were facing "very real commercial pressures" at a "crucially competitive time".
"Any response should not exacerbate this and risk driving away both talent and private equity capital from the UK," he said.
However, action must be taken, he added.
The Association of Investment Companies announced similar issues with why private equity funds were being called upon for enhanced reporting and not the entire sector. It also welcomed the proposals.
Sir David Walker's review proposed that a set of guidelines be provided for the industry to voluntarily follow.
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