EFAMA lays out corporate governance and RI codes
The European Fund and Asset Management Association (EFAMA) has unveiled new codes of conduct on responsible investing and corporate governance.
The EFAMA guidelines for responsible investing call for managers to support regulatory initiatives surrounding responsible investing and to encourage institutional investors like pension funds, to be transparent about their RI strategies.
It also calls for asset managers to provide more transparency themselves on their responsible investment processes so investors are better able to compare funds.
EFAMA said the code of best practice for corporate governance is meant to serve as a “catalyst for engagement between investment management companies and the companies in which they invest”.
EFAMA’s principles cover strategy and performance and other corporate governance issues like board construction, election, succession and remuneration. It also deals with how asset managers should approach corporate social responsibility and risk management when engaging with a company.
Peter De Proft, Director General of EFAMA, said: “EFAMA fully recognises that corporate governance and responsible investment are both issues which are high at the European Commission’s agenda. I believe that the publication of the EFAMA Code for External Governance and the Report on Responsible Investment strongly illustrates the commitment of the investment management industry to play its constructive part in these important issues.”