Kay Report calls for 'investor forums'.

New forums should be created as a bridge between investors and financial services firms, it is believed.

According to a new review of the financial industry carried out by John Kay, a professor at the London School of Economics, firms need to focus on returns for savers and investors, rather than short-term rewards.

The review suggested that the pay and bonuses offered to employees working in the sector should match long-term goals instead of "short term gains".

Professor Kay said: "A lack of trust and poorly aligned incentives have helped create a culture of short-termism in our financial markets.

"This is undermining their role of supporting innovative, sustainable long-term business performance."

His report calls for the rules to be scrapped that make it mandatory for stock market-listed firms to publish updates each quarter.

The review was originally commissioned by Vince Cable, the country's business secretary.

Copyright Press Association 2012