The Government has been warned against locking retail investors out of the market following a review into the way shares in publicly-owned assets are sold.
Lord Myners carried out the review after the National Audit Office said the initial public offering for the privatisation of Royal Mail was rushed at the expense of value for money.
In his findings former City Minister Lord Myners said considering whether future government primary share disposals should include a retail offer is a “key debate”.
The report said: “A retail offer can also add price tension to a sale process and this should be more fully exploited in the future.
“However, a full retail offer considerably increases the complexity and rigidity of an offer process. This can impede ultimate price discovery.”
The report also found the Government made £180m less from the sale of Royal Mail than it should have done.
But Lord Myners has not criticised the Government and said the sale was carried out with “considerable professionalism”, adding that asking for a higher price would have involved uncertainty and risk.
Liz Field, chief executive of the Wealth Management Association, said: “Giving priority to institutions or sovereign wealth funds ignores those who have a vital stake in these companies in the first place.
“Individual shareholders are typically investors, not speculators - they look to the long term and many take an active interest in the performance of the companies they own.
“Naturally, not all opportunities will be appropriate for ordinary investors and they should always look at each company on its own individual merits.
“However, we believe it is inherently important that they should be given that opportunity to invest in the first place.”
