Home > Legal articles > Pension funds to provide clarity on engagement policy
The bill implementing the revised Shareholders’ Rights Directive in the Netherlands, adopted by the House of Representatives in April, is currently under discussion in the Dutch Senate. The directive is aimed at enhancing shareholder engagement with the corporate governance of listed companies. New statutory disclosure requirements will apply for institutional investors, including pension funds. These entities will need to publish their engagement policy detailing how they incorporate ESG-factors (Environmental, Social, Governance) when investing in companies, and how they exercise voting rights in connection with their investments. If an institutional investor appoints an asset manager, the institutional investor will need to disclose how it incentivises the asset manager to take the long-term interests of the investor into consideration, which include: ESG-factors, voting rights and transactions costs (turnover range of the investment portfolio and duration of the investment management agreement). An institutional investor or asset manager may decide not to execute an engagement policy, as long as it publishes a clear and reasoned explanation on its website. According to the Explanatory Memorandum, the explanation will need to be elaborate. The bill does not include any transitional arrangements for these aspects. The date of entry into force remains unknown.
This article is only available in Dutch, click here to read it.
15 December 2020
Pension funds must prepare now and be ready to apply SFDR in early 2021
23 October 2020
Privilege of foreign in-house counsel: English court sets standard, Dutch to follow?
14 July 2020
Details of Dutch Pension Deal published: now is the time to start preparing
19 May 2020
Pension contributions during the crisis: postponing payment and key points for employers
16 April 2020
Dutch Pension Deal should distribute financial shocks fairly, but how?
16 March 2020
DNB clarifies guidance statements | Pension funds in the lead on organising key functions
14 February 2020
Changes to management and supervision of legal entities: get ready for summer
20 January 2020
Low rates complicate balancing of interests by pension fund boards
17 December 2019
17 December 2019
Pension funds with >90% cover ratio do not have to cut pensions
De Brauw Blackstone Westbroek
Claude Debussylaan 80
1082 MD Amsterdam
The Netherlands
P.O. Box 75084
1070 AB Amsterdam
The Netherlands