Responding to the Financial Conduct Authority’s announcement that they are launching a review into investment and corporate banking in the UK, Oliver Parry, Senior Corporate Governance Adviser at the Institute of Directors said:
“The IoD broadly welcomes the FCA’s decision to investigate competition within the investment banking industry. There remain some unanswered questions about potential conflicts of interest and value for money in the investment banking industry.
“However, we believe that the FCA should prioritise looking at the fund management industry. There are many reasons to be proud of the UK’s fund management sector, but a centre piece of reform in fund management has to be greater transparency. Greater clarity is required about their pay, fees, trading activity and perhaps most pertinent, their commitment to stewardship and their voting record.
“Labour’s proposals to require fund managers to reveal how they vote on pay deals, for example, is a sensible step in the right direction.”