NAPF comment on government’s response to Kay Review
22 November 2012
The National Association of Pension Funds (NAPF) commented on the Government response to Kay’s independent Review of UK Equity Markets, which was published today (Thu).
David Paterson, Head of Corporate Governance at the National Association of Pension Funds (NAPF), said:
“By endorsing Professor Kay’s recommendations, the Government is giving a clear direction of travel, which will help pension funds play their part more effectively in reducing a short-termist culture in UK companies and markets. Equity markets must work more effectively in the long-term interests of investors and savers.
On the Government’s call to take forward Kay’s Good Practice Statements for asset owners:
“We support the Good Practice Statements proposed by the Kay Review. We have already taken some of the principles forward by publishing our Stewardship Policy today, which will help our members fulfil their responsibilities as investors and to sign up to the Stewardship Code.
On fiduciary duties to be clarified by the Law Commission:
“We welcome any efforts to increase the clarity and understanding of the legal obligations arising from fiduciary duties and look forward to seeing the outcome of the Law Commission’s review.
On the Investors’ Forum:
“The NAPF supports the creation of an investors’ forum that brings investors together to discuss, in a collaborative way, issues affecting them. It is important that any such forum is led by investors for investors.
On bringing an end to mandatory quarterly reports to help reduce the excessive focus on short-term earnings:
“There is a strong sense among our members that quarterly results reporting and trading updates bring excessive focus to the short-term with little or no benefit for the long-term investor. So we are pleased that the Government will undertake work in this area.”
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]