The Kay Review of UK Equity Markets and Long-Term Decision Making was commissioned by the UK Government to review how well equity markets are achieving their core purposes.

The Pensions and Lifetime Savings Association is supportive of attempts to consider the vital issue of how to structure the market such that it incentivises and appropriately rewards long-term investors. Equity markets should work more effectively in the long-term interests of investors and savers, who need to be able to see that they are getting value for money.

Key Kay recommendations

  • We support the Good Practice Statements proposed by the Kay Review. The Pensions and Lifetime Savings Association adopted much of the Good Practice Statements for Asset Owners within its Stewardship Policy. We have provided further tools through the Stewardship Central site to enable pension funds to better hold accountable their asset managers for being good stewards of their client’s assets. 
  • We welcomed efforts to increase the clarity and understanding of the legal obligations arising from fiduciary duties. The succinct and helpful guidance for trustees published by the Law Commission can be found here.
  • We supports the creation of an Investor Forum to facilitate comprehensive, proactive collective engagement between companies and investors in the interests of protecting and creating long-term value.


The European Commission adopted a revised Shareholder Rights Directive in April 2014 - the overarching aim is to contribute to the long term sustainability of EU companies.

The Directive aims to stimulate and facilitate shareholders’ interaction with investee companies, enhance shareholder rights over executive pay and related party transactions and bring greater transparency to the policies and activities of institutional investors, asset managers and proxy advisors.