Dutch institutional investors and asset managers to publish how they engage as shareholder
The upper house of the Dutch parliament has adopted a bill implementing the revised European Shareholder Rights Directive. The directive’s aim is to promote that investors get a better insight into the corporate governance of the companies that they invest in, the remuneration policy of those companies, and their transactions with related parties. According to the directive, shareholder engagement can contribute to companies’ improved financial and non-financial performance, including ecological, social and governance factors. Under the new transparency requirements, institutional investors (pension funds and insurers) and asset managers must make public how they put this shareholder engagement into practice. It is important, in particular, that institutional investors and asset managers assess whether the investment management agreements need to be adapted in light of the new transparency requirements. They should also ensure that the information they publish as part of this transparency is consistent with their existing policy documents, some of which have already been made public, such as the statement of investment policy principles. The implementing bill is expected to enter into force by 1 January 2010, without a transition period applying. Click here for our earlier guidance on the implementation.
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