One of the expected themes of Year Two for assessment of value (AoV) reports is identifying the ultimate audience for the final documents.
According to Ignites Europe (subscription required), investment bank researchers and analysts could form part of this audience. The publication interviewed analysts at Credit Suisse, UBS and Numis Securities who highlighted the work of fund boards as potentially of interest in their work analysing listed fund groups.
Another factor for boards to consider is how retail investors rate their brands – consumer group Boring Money has published its Q1 ranking based on a survey of 1,500 people. The ranking is available here.
As part of the 2021 iNED Bootcamp, FBC interviewed the Financial Conduct Authority (FCA). If you’re an FBC Member, you can still watch this session (and all other Bootcamp content) on demand, by logging into the Member Portal here. For additional colour, Ignites Europe spoke with FCA head of asset management Nick Miller on AoV, highlighting that boards have “a lot more work to do”.
Asset Management’s Diversity Dilemma
The FCA session also touched on the issue of diversity and inclusion, which is high on the regulator’s agenda. Its scrutiny of this area indicates that the financial services sector is ‘on notice’ over diversity issues according to this column by Liz Field, chief executive of PIMFA, for FTAdviser. The investment industry in particular is struggling to meet demand for diversity data, reports Investment Week, citing research by LGBT Great, the Diversity Project and NICSA.
Sourcing this data can be difficult given potential sensitivities, but disclosing diversity could be the next push for fund boards in the US, according to BoardIQ (subscription required). Some boards, such as Morningstar, already disclose data on board members, but formal rules could emerge if a proposal from Nasdaq on diversity disclosures for corporates gains traction.
Also worth a read is this powerful column for Investment Week by Legal & General Investment Management’s multi-asset head Justin Onuekwusi, in the wake of the UK government’s controversial Sewell Review.
FCA: Action Stations
After being preoccupied with its pandemic response and dealing with Brexit, the FCA is kicking into action in 2021 with a series of consultations and reviews. Authorised corporate directors will come under scrutiny from the regulator this summer, reports Ignites Europe.
Following the UK’s exit from the EU, the regulator is reviewing the MiFID rulebook and has proposed changes to research cost rules for smaller companies in an effort to boost coverage and competition, according to this article from the Financial Times.
Another consultation paper, CP21/7, has proposed a framework for aligning remuneration at MiFID firms with environmental, social and governance risks. With SFDR from the EU, TCFD reporting, and growing investor demand, this is going to be a key consideration for all stakeholders in asset management for years to come.
FBC members can still access all materials from April’s Bootcamp on the website or via this link.
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