UKSIF offers qualified support for Government’s response to Kay Review

UKSIF4th November 2013

The UK Sustainable Investment and Finance Association (UKSIF) today welcomed aspects of the Government response to the Kay Review, which outlined its commitment to promoting a long-term outlook in UK financial markets and enabling UK companies to deliver sustainable economic growth.

Caroline Escott, UKSIF Head of Government Relations, said:

The financial crisis in 2007 clearly demonstrated the need for a radical reshaping of capital markets and better investment practices that support long-term economic growth.

 We’re pleased to see that in its response, the Government recognises the significant steps already taken by the industry to promote and boost long-termism across the investment chain. 

 We also welcome the Government’s encouraging comments on the need for greater asset owner sign-up to the Stewardship Code – an important issue that UKSIF and its members have raised with policymakers and regulators as a priority issue.

 However, it’s a shame that this response misses the opportunity to more explicitly highlight the need for consideration of environmental, social and governance factors by both asset owners and managers in order to fulfil their stewardship responsibilities. 

 We’ll continue to engage with the Government, the FRC, the FCA and other investor organisations on these issues to ensure that UK capital markets fully enable companies and savers to work together in a world of environmental limits and social change with trust and confidence”.

Read the press release in full here.