The risk this poses to society, and ultimately the taxpayer, means that a distinctive approach is needed to SIFIs’ governance. While it is inevitable that this will involve regulators, it is important that a balance is maintained between the constraints of regulation and allowing boards to decide what is in shareholders’ best interests.
Liz Murrall, IMA Director of Corporate Governance, said: “IMA has long been a supporter of engagement and over the last 10 years it has been transformed. It is important that any regulatory approach to a SIFI’s governance does not undermine the role played by shareholders in holding boards to account. Nevertheless, there is a limit to what engagement can achieve, as asset managers do not run companies, do not set strategy, nor are they insiders in that they only have access to the same information as the market as a whole”.
Press release
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