Transferability of Equity

This note provided advice on when investors in PFI projects should be free to transfer their investments in and out of a particular project. It concludes that the public sector should not seek to restrict the private sector's freedom to transfer its investments, except in very limited circumstances.

Allowing investors to transfer their interests in and out of PFI projects extends the pool of bodies interested in PFI, increases the availability if capital for PFI investment, makes the PFI market more liquid, and helps improve value for money. It also meets a particular concern of companies in the construction industry about trying up their finite capital resources in a small number f very long term investments.