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The CBI responded to the publication of the Company ownership: transparency and trust discussion paper, by the Business Secretary, Dr Vince Cable.

Katja Hall, CBI Chief Policy Director, said:

“We back the broad drive for greater trust and transparency to promote more responsible capitalism but this must be proportionate without adding extra red tape for the sake of it.

“Company law should be consistent, with directors’ duties common across all parts of the economy, so we’re concerned with the emergence of a piecemeal approach.

“Prioritising ‘safety and soundness’ over other important directors’ duties in the banking sector sets a dangerous precedent.

“There are already tough criminal sanctions for those who engage in fraudulent behaviour and powers to clawback pay from individuals if they are found to have mis-managed a company. The priority should be enforcing laws which already exist, rather than introducing a raft of new bureaucracy.”

On business taxation, Ms Hall said:

“We support a global register of beneficial company owners to boost tax transparency. The onus should be on the beneficial owner to declare their holding and we agree listed companies should be exempt because they are already subject to tough disclosure rules. Providing we get the details of beneficial ownership right, we are open to the idea of making a register publically available."