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The ABI, whose members put billions of pounds of investors' cash into company fundraisings every year, wants shareholders to receive more information about the fees paid to the lineup of banks which advise companies on stock market flotations and cash calls. The fees paid are currently aggregated and the ABI is suggesting that these are broken down. The ABI also wants to have a say in whether any additional success fees should be paid to the banks.

The ABI also suggests that a smaller number of banks should be involved in the syndicates which back the fundraisings and argues that retail investors should be given more opportunities to buy shares.

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The ABI is proposing to conduct further analysis of fundraisings by companies which are already listed on the stock market and attempting to raise more money. Shareholders usually demand pre-emption rights, which give them an opportunity to buy the shares before new investors to allow them to maintain the same level of influence over the company.

"Pre-emption as the cornerstone of this system is a major strength and remains highly valued by investors. Greater clarity is needed surrounding what is acceptable to investors in relation to non pre-emptive placings," the ABI said.

It conducted a review of the way the current market operates following the report for the government by John Kay on encouraging long-term investment.

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