Engagement Policy Development – Shareholder Rights Directive (Directive (EU) 2017/828)
The Revised Shareholder Rights Directive (SRD II) aims to promote effective stewardship and long-term investment decision-making. Primarily, it aims to achieve this by enhancing transparency of engagement policies and investment strategies across the institutional investment community.
Under the SRD II rules implemented by the FCA, asset managers are required to develop and publicly disclose an Engagement Policy.
An Engagement Policy, amongst other things, provides investors and shareholders with information on how the asset manager engages in dialogue with companies it invests in, exercises voting rights and how it manages actual and potential conflicts of interest.
It will also provide details on the investment approach taken by the asset manager when considering relevant factors of the investee companies, such as strategy, financial and non-financial performance and risk, and applicable social, environmental and corporate governance aspects.
Last updated:2 March 2022