January 2, 2016

Institutional Investors in 2016 Seek to ‘Trust, but Verify’ on Governance

To better corporate governance across the globe is likely to be in strong focus in 2016. Not only are investors increasing their scrutiny of boardrooms, but they are under pressure themselves. In the U.K., the financial crisis gave rise to a new investor stewardship code, and many other countries, including Japan and Malaysia, are looking at similar initiatives. Corporate governance codes and declarations of intent by institutional investors are intended to try and ensure that they fulfill their responsibilities to manage their investments and vote their shares transparently. The U.K.’s corporate governance watchdog, the Financial Reporting Council (FRC), ended 2015 with an indication that it was going to get tough on those merely paying lip service as signatories to the Stewardship Code.

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