UK - Plans to make it mandatory for institutional investors to publicly disclose how they vote their shares would increase cost and compliance burdens with "no benefits" of improved corporate governance, the IMA argues.
Referring to the Company Law Reform Bill, unveiled yesterday, Richard Saunders (pictured), chief executive of the IMA, said: “IMA supports transparency of voting by institutional investors and disclosure to clients on how their shares are voted, but we have serious concerns over the introduction of reserve powers to make it mandatory for institutional investors to disclose publicly how their shares have been voted.”
This requirement would increase costs and compliance burdens with no benefits in terms of improved corporate governance, the association argues. The government has, moreover, seriously underestimated how much such a regime will cost, said Saunders.
The plans are also designed to help keep the regulatory burden on business to a minimum, promote shareholder engagement and encourage a long-term investment culture.
Deregulation was the key aspect of the Bill, unveiled yesterday, which contains proposals to save businesses up to £250m a year, including £100m for small businesses.
Trade and Industry Secretary Alan Johnson said: An effective framework of company law and corporate governance will promote enterprise and help stimulate investment in the UK. We have focused throughout on making the law more accessible and 'thinking small first.
These measures also represent a significant step forward in ensuring that our company law remains up to date, flexible, and accessible for everyone who uses it.”
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.