The Investment Management Association (IMA) has issued a brief statement in response to the Walker Review on the governance of banks and other financial institutions.
Richard Saunders, IMA Chief Executive, said:
"We welcome many of the recommendations in the document in respect of both the governance of banks and the role of institutional shareholders.
We question, however, the recommendation that the FSA should encourage commitment to the Principles of Stewardship as best practice. This is not an appropriate part of the process of FSA authorisation. An investment manager's duties are to the client. Managers take a wide range of different approaches to managing money, some involving active engagement with the companies in which they invest, some not. We do not believe the regulator should get involved in what is the best way to manage money. That should be between the manager and the client, and the authorities should not become involved."
View IMA’s initial reaction to Walker Review, 16 July 2009