On 24 November 2020, the Asset Management Task Force (Taskforce) published a report, Investing with purpose: placing stewardship at the heart of sustainable growth.
Established in October 2017, the Taskforce was designed to encourage greater dialogue between the Government, the investment industry and the FCA to ensure the UK investment industry continues to deliver for consumers and the wider economy. The Government committed to use the Taskforce to identify opportunities to enhance the UK’s competitiveness as a leading global centre for investment management and oversee the delivery of HM Treasury’s Investment Management Strategy. The Taskforce is chaired by the Economic Secretary to the Treasury and is comprised of CEOs from a diverse cross-section of the investment management industry, senior representatives of investor groups and the FCA.
According to the 2020 UK stewardship Code, stewardship is the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.
Last year, John Glen MP, the Economic Secretary to the Treasury and chair of the Taskforce asked the Taskforce to establish a stewardship working group and stakeholder working group to make proposals for how stewardship and responsible investment could be strengthened in the UK. The report now published sets out recommendations to improve stewardship and ensure that the UK maintains and enhances its position as a centre of excellence in stewardship globally. The recommendations are in three pillars, which together are intended to strengthen stewardship in the UK:
- Pillar 1: Stewardship behaviours – practical steps for strengthening how stewardship works in practice across the full range of investments.
- Pillar 2: Stewardship for clients and savers – Delivering on the purpose of the industry to generate sustainable value and achieve clients’ investment goals.
- Pillar 3: Economy wide approach to stewardship – ensuring the collective responsibility of market participants and stakeholders.