The Office of Fair Trading has made an announcement that it will inquire into parts of the investment banking industry.

The inquiry will keep its focus on the costs which investment banks charge for their clients for services, for example advising companies and underwriting share offers.

The study will scrutinize whether parts of the work that is carried out by investment banks might have an effect on contest or consumers.

The investigation will look at patents issues and other kinds of equity-raising by the 350 biggest UK public corporations.

Firms, whose UK business comprises of an investment banking arm, involve Royal Bank of Scotland, Barclays, Goldman Sachs, Morgan Stanley and Citigroup.

The OFT said that it would examine the capability of the equity underwriting market and also recognize any areas for enhancement.

In the year 2009, firms raised an anticipated £70bn of equity capital in the UK, shelling out a projected £2bn in fees for equity underwriting and associated services, the OFT said.

Preliminary discussions have offered confirmation that there is some displeasure with these services amongst corporate users of the market.

The supervisory body would examine how underwriting and associated services were offered and bought by the Company and customers.