04 — The Problems

Why the current system creates friction and information asymmetry

The UK market has sophisticated disclosure requirements and a rich ecosystem of intermediaries. Yet significant problems persist — not from any single failure, but from how the system fits together.

01

Unstructured data at source

Most regulatory announcements are documents, not data.

  • Announcements start as Word documents, formatted by humans
  • Key figures (revenue, profit, guidance) are buried in narrative text
  • No standard structure means every announcement must be parsed individually
  • Comparing results across companies requires manual extraction or expensive data services
  • Historical data is locked in PDFs and archived web pages

Consequence: Machine analysis is expensive and error-prone. Only well-resourced players can process information at scale.

02

Fragmentation across platforms

Information is scattered across dozens of disconnected systems.

  • RNS announcements appear on multiple sites, each with different features
  • Company presentations live on IR websites, often hard to find
  • Research is siloed within provider platforms
  • Event content (conference Q&As, site visits) rarely gets transcribed
  • Social media discussion happens separately from official channels

Consequence: Investors must manually stitch together a complete picture, often missing pieces. Time spent aggregating is time not spent analysing.

03

Unequal access to information

The playing field between institutional and retail investors is not level.

  • Institutions get direct access to management through roadshows and one-on-ones
  • Commissioned research is often embargoed before public release
  • Corporate access events are rarely open to individual investors
  • The cost of professional terminals ($32,000/year for Bloomberg) excludes most retail participants
  • Real-time data feeds cost thousands per month

Consequence: Information asymmetry persists despite regulations designed to ensure fair disclosure.

04

Poor visibility for companies

Companies release information into a void with limited feedback.

  • No clear view of who actually reads announcements
  • Engagement metrics (if they exist) are siloed within individual platforms
  • Hard to know which investors are interested vs which are shareholders
  • Media pickup is unpredictable and hard to track
  • Questions from the market often go unanswered because companies don't know they're being asked

Consequence: Companies can't optimise their communication because they can't measure it. Good disclosure goes unrewarded.

05

High cost of insight

Quality interpretation is expensive to produce and expensive to consume.

  • A Bloomberg terminal costs ~$32,000 per year
  • Commissioned research costs companies £20,000-50,000 per report
  • MiFID II unbundling reduced broker research coverage dramatically
  • Many AIM stocks now have zero analyst coverage
  • DIY analysis requires significant time investment to be meaningful

Consequence: An information gap exists for smaller companies: too small for institutional interest, too obscure for media coverage.

06

Temporal fragmentation

Information decays and gets lost over time.

  • Historical announcements are hard to search and compare
  • Management commentary from years ago is effectively lost
  • Guidance changes over time are difficult to track systematically
  • Old investor presentations disappear from company websites
  • Context that was obvious at the time becomes obscure later

Consequence: Institutional memory is weak. Patterns that would be obvious with good data remain hidden.

The cumulative effect

These problems compound. Unstructured data makes aggregation hard. Fragmentation means multiple sources must be checked. High costs exclude most participants. Poor visibility prevents feedback loops that could improve the system.

The result is a market where:

Small companies

Struggle to get their story heard, trade at discounts due to poor liquidity and information availability.

Retail investors

Face significant information disadvantages despite being a growing share of market activity — even sophisticated, experienced investors.

Capital allocation

Suffers because price discovery is less efficient than it could be with better information flow.

The sophisticated retail investor

The "retail investor" label obscures a crucial distinction. Yes, there are casual traders and app-based speculators. But there's also a substantial community of serious, experienced individual investors who approach the market with the same rigour as professionals — just without the institutional infrastructure.

ShareSoc, the UK Individual Shareholders Society, represents over 10,000 of these investors. Many are high-net-worth individuals with decades of experience. They read annual reports, attend AGMs, analyse balance sheets, and engage directly with company management. They're not looking for tips — they're looking for data.

What they need

  • • Timely access to regulatory announcements
  • • Structured data for comparison and analysis
  • • Historical records of guidance and results
  • • Direct engagement with company management

What they face

  • • Professional terminals priced for institutions
  • • Fragmented information across dozens of sources
  • • Limited access to corporate events
  • • Tools designed for casual users, not serious analysis

This isn't about democratising access for its own sake. These investors provide genuine liquidity, particularly for smaller companies. They take long-term positions. They vote their shares and hold boards accountable. The market works better when they can participate on fair terms.

Sources & References

  1. [1]Companies listed on London Stock Exchange Main Market and AIM, February 2025. Statista, "Number of companies on London Stock Exchange 2025"
  2. [2]UK adults actively trading stocks as of 2025. BestBrokers.com, Stock Trading Demographics 2026
  3. [3]Regulatory announcements per year through RNS (approximately 1,500 per day). LSEG Regulatory News Service
  4. [4]Global average investor relations budget (excluding salaries), 2024. IR Magazine Global IR Practice Report 2024
  5. [5]Bloomberg Terminal annual subscription cost for single users, 2025. NeuGroup, "Bloomberg Terminals: How Much More You'll Pay Next Year"
  6. [6]Retail share of daily equity trading volume in UK, US, and South Korea. World Economic Forum, 2024 Global Retail Investor Outlook