Paper to Stress Private-Equity Transparency: FT

A corporate governance paper on the private equity industry is expected to recommend greater financial transparency and improvement to corporate governance, which could include the appointment of independent directors, said the Financial Times without citing sources.

The Walker Report, put together by former Morgan StanleyInternational chairman David Walker, will be presented to the London Stock Exchange today.

The FT said most controversially, he is expected to float the idea of buyout firms appointing external, non-executive directors to the boards of some companies bought by private equity.

The 50-page report will start a three-month feedback process. Final conclusions later this year will create a code of conduct to be imposed on a "comply or explain" basis, the FT said.

The Walker report is being closely watched by buy-out firms and other industry bodies around the world, such as the European Private Equity and Venture Capital Association, which are waiting for its conclusions before pursuing their own reviews, it said.