IMA WELCOMES FRC's CONSULTATION ON THE STEWARDSHIP CODE FOR INSTITUTIONAL INVESTORS

Responding to the Financial Reporting Council's (FRC)  consultation on the Institutional Shareholders' Committee's Stewardship Code for Institutional Investors, Liz Murrall, Director of Corporate Governance at the Investment Management Association (IMA), commented:

"The IMA welcomes the FRC's Consultation on the Stewardship Code.  The Code will help clarify institutional investors' responsibilities in engaging with companies. We support the Code being implemented on a ‘comply or explain' basis and providing beneficial owners and clients a choice as to the investment strategy they want their managers to adopt.  The disclosure of investors' polices on engagement will help beneficial owners and clients make that choice.

We also support the proposals to monitor the application of the new Code. IMA has monitored engagement since 2003 through its annual Engagement Survey. The survey is well regarded and is supported by the industry. With suitable development it can provide the mechanism for monitoring the Code in the future.  We look forward to working with the FRC and others on this."

- ENDS -

About Investment Management Association
IMA is the trade body for the UK's £3 trillion asset management industry. The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs. Its role is to represent the industry and promote high standards.

For further information, please contact:
Noreen Shah, Press Officer, IMA, 020 7831 0898
Ginny Broad, Head of Communications, IMA, 020 7831 0898 or 07834 089332