With all the chat about the break up of the FSA you might have missed that The Financial Reporting Council will be launching its Stewardship Code for Institutional Investors soon, a document that is traced back to Sir David Walkers November 09 report on governance at banks and financial institutions. The aim is to provide greater transparency and accountability for investors particularly in relation to pension schemes. Its an interesting one because I have been somewhat queezy about some of the recent comment around BP that amounts to the suggestion we should turn a blind eye to poor corporate behaviour for the sake of “all our pension”. Well not mine mate.
The imminent launch prompted a short but nevertheless interesting debate on “You and Yours” yesterday between Richard Northedge and Penny Shepherd of the UK Sustainable Investment Association
I have fairly firm views on ethical investment and shareholder activism, but it is always interesting to hear what others feel. As you may know I also have firm views on the phrase “Best Practice” so I was a bit disappointed to see it as part of the aims of the code but hey you cant get everything in life. Didn't hear any mention of “going forward” though so have to be thankful for that.