EFAMA publishes corporate governance code
From News May 9 2011 BY: Simon Danaher
, Online News Editor
, International Adviser
The European Fund and Asset Management Association (EFAMA) has published a code setting out guidelines for investment companies engaging with investee firms on corporate governance.
EFAMA said its Code for External Governance aims to provide a framework for high-level principles and best practise recommendations which will “act as a catalyst for engagement between investment management companies and the companies in which they invest”.
It added that adherence to this code will support interaction between investment managers and investee companies and ensure a strong link between governance and the investment process.
In addition, EFAMA has published a report into responsible investing across Europe which concludes that when an investment company provides RI products “it should commit to an adequate amount of transparency regarding its processes so that investors are able to evaluate and compare how the product meets the RI requirements”.
Peter De Proft, director general of EFAMA, said: “EFAMA fully recognises that corporate governance and responsible investment are both issues which are high at the European Commission’s agenda.
“I believe that the publication of the EFAMA Code for External Governance and the Report on Responsible Investment strongly illustrates the commitment of the investment management industry to play its constructive part in these important issues.”