Stewardship Code Response
IVIS Response to Proxy Advisors Regulations 2019
On the 10th June 2019, the Proxy Advisors (Shareholders’ Rights) Regulations 2019 (the “Shareholders’ Regulations”) came into force, to implement the proxy advisor provisions of the revised EU Shareholder Rights Directive (SRD II). The aim of SRD II is to improve the stewardship of EEA based companies. Under the Shareholders’ Regulation, IVIS must set out how it applies a Code of Conduct. IVIS applies the Financial Reporting Council (“FRC”) Stewardship Code (published in 2012) and regularly publishes its response to its application of the Stewardship Code in its, ‘Response to the UK Stewardship Code’.
The 2012 Stewardship Code is directed at institutional investors (i.e. asset owners and asset managers with equity holdings in UK listed companies) and aims to enhance the quality of stewardship, setting out seven principles of stewardship to be applied. Investors may use external service providers to aid their stewardship activities. As a service provider of stewardship services the Code also applies to IVIS, which is why IVIS has chosen to apply the Stewardship Code.
In January 2019, the FRC consulted on a revised Stewardship Code. The FRC is expected to issue the final version later this summer. In this document, IVIS has addressed certain areas concerning the service provider principles and provisions proposed in the 2019 draft Stewardship Code, but not covered by the current Stewardship Code. We will report fully against the 2019 Stewardship Code once the final version has been published.
21 June 2019