Terry Smith, the veteran UK financier and chief executive of inter-dealer broker Tullett Prebon, who last year set up asset management company Fundsmith, has called for a change in financial accounting rules to stop companies using share buybacks to make their results look better.

He becomes the latest fund manager to comment on the question of whether companies with surplus cash should increase their dividends, buy back shares or spend the money on acquisitions. Smith has focused on criticising share buybacks.