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Asset managers face new rules on shareholder engagement

In line with the Shareholder Rights Directive II, the FCA’s Policy Statement 19/13 has introduced new requirements for asset managers to improve shareholder engagement and increase transparency around stewardship.

From 10 June 2019, asset managers must disclose and make publicly available their policies on how they engage with one another and with companies they invest in – and how their strategies create long-term value.

  • Asset managers must publish an engagement policy and annual updates on implementation – or explain publicly why they haven’t.
  • Life insurers must disclose annually their arrangements with asset managers, how the main elements of their equity investment strategy are consistent with the profile and duration of their liabilities, and how these elements contribute to the medium-to-long term performance of their assets.
  • Asset managers must provide information to asset owners – including how their investment strategies contribute to medium-to-long term asset performance.

What do you need to do?

If you’re an asset manager, you need to publish your engagement policy, or explain why not, by 10 June 2019. Annual disclosures must be made at the end of the first full period after that date.

How can Thistle help you?

If you would like more information, or help with drafting your shareholder engagement policy, please get in touch via email info@thistleinitiatives.co.uk or call 0207 436 0630.

Thistle can also provide a full range of compliance services, including help with FCA or PRA authorisation and variations of permission, advice on how to improve your systems and controls, past business and complaint handling reviews, remedial solutions, online and tailored compliance training, regulatory reporting assistance, MiFID 2 and CASS auditing, policy and procedure suites, skilled person project assistance and call and transaction monitoring. View our full range of services here.