Responding to the final report of the Kay Review of UK Equity Markets and Long-Term Decision Making, Liz Murrall, IMA Director of Corporate Governance and Reporting said: “The Kay Review is a welcome contribution to the debate about the effectiveness of UK equity markets. It sets out some very clear recommendations and we will be looking carefully at the detail. The report’s main conclusion is that short-termism is a problem in the UK equity markets. It recognises the distinction between investors and traders, but this is not taken into account in the analysis of short termism. IMA does not consider asset managers contribute to short-termism.”
“We note and agree with the call for better engagement between companies and the industry. IMA’s survey of the activities that underlie the Financial Reporting Council’s Stewardship Code shows that engagement is increasing steadily and that it has a positive influence on corporate behaviour. In the interest of improving trust, one of the principles in the report is that all participants in the investment chain should observe fiduciary standards. This is to be welcomed, as asset managers already have the best defined, legal obligations of care towards their clients and it is right that these are extended to others.”
Press release
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