The government should investigate Britain’s fund management industry as soon as possible, according to a governance manifesto released by the IoD
The ‘Priorities for Corporate Governance’ report also states that fund managers should be required to declare how they vote and that non-executive directors should be excluded from the financial sector’s new criminal liability rules.
The policies, says Dr Roger Barker, IoD director of corporate governance, are designed to promote long-termism, value creation, diverse boards and an entrepreneurial corporate culture.
“In a fast-evolving world it is impossible for the regulatory system alone, no matter how sophisticated and well-meaning, to guarantee the sort of corporate behaviour we would all like to prevail,” he says.
“The IoD is of the view that good corporate behaviour and good corporate citizenship are ultimately determined by the right culture, attitudes and expertise among board members.”
Other measures in the manifesto include promoting director training to improve corporate governance and boardroom diversity without the need for costly regulation.
“Shifting the boardroom appointments process away from ‘the usual candidates’ and towards those who can better manage emerging opportunities and risks – particularly in areas like digital technology – should be a key business priority after the next election,” says Barker.
“This will necessitate more open and transparent approaches to recruitment, including greater disclosure of appointments processes for directors and, where possible, public advertising of available positions… I believe following the principles and proposals we have released today will bring about just such an environment.”
To download the ‘Priorities for Corporate Governance’ report, click here