The Collective Engagement Working Group, which was formed as a result of the Kay Review on equity markets and long-term decision making, has published a report and recommendations on how investors might collaborate in their engagement with listed companies to improve sustainable, long-term company performance.

The recommendations of the Working Group are summarised as follows:

  • Changing the culture around engagement – this is identified as being the main objective of a new Investor Forum which should be established and operational by the end of June 2014;
  • Increasing participation through the Forum. Participation should be voluntary and open to all major institutional investors that have an interest in a company and focus on major UK listed companies;
  • Companies should have an annual strategy meeting (or equivalent) with institutional investors (or explain why not);
  • Improvement of accountability in the investment chain – this includes institutional investors asking for feedback from company non-executive directors on the quality of their engagement;
  • Addressing potential impediments; and
  • Measuring the Forum's success.

The implementation team of the Working Group will provide a status update by the end of March 2014 on these recommendations.