FIN.

FCA makes shareholder engagement and transparency rules

FCA has made new rules to improve shareholder engagement and increase transparency around stewardship. The new requirements take effect from 10 June.

FCA will require:

  • asset managers and life insurers to publish their engagement policy and annual information on how it has been implemented or explain why they are not doing so;
  • life insurers to disclose annually their arrangements with asset managers, how their equity investment strategy is consistent with the profile and duration of their liabilities and how the elements contribute to medium to long term performance of their assets; and
  • asset managers must provide information to asset owners, including on how their investment strategies contribute to the medium to long term performance of their assets;

Issuers must also make new disclosures about their related party transactions.

The rules form part of the UK response to the EU’s drive to improve transparency. FCA is still considering its response to its discussion paper on effective stewardship and will publish feedback in due course.

The changes affect the Glossary, SYSC. COBS, LR and the DTR.

Barry Stimpson

Barry Stimpson