Friday, January 10, 2014

Financial Reporting Council "Why we are too lazy and owners too stupid to vote in pooled pension funds"

The Financial Reporting Council (FRC) is a well known "mates club" of financial services industry representatives pretending to be a UK independent regulator on corporate governance and investment.

Top Finance blogger Tom P at "Labour and Capital" comments on the latest FRC report that dismisses attempts by pension schemes who invest in pooled funds to be able to vote on their shareholding.

As Tom points out there is no good reason for this not happening whatsoever. The only reasons I can see is that most (not all) asset managers are just too lazy to arrange this and think that asset owners are too stupid to be able to vote. 

I am also forced to conclude that the FRC doesn't want pesky share owners to be able to vote because they may have the blooming cheek to vote down their mates obscene (and growing) executive pay and other super generous perks.

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