UK: collective action by shareholders - FSA guidance published

Sally Dewar, managing director of wholesale and institutional markets at the Financial Services Authority, has written a letter to the chairman of the Institutional Shareholders Committee outlining the circumstances in which collective engagement by institutional shareholders would not breach the rules concerning market abuse, disclosure of substantial shareholdings and changes in control. In the accompanying press release, it is stated:

The FSA strongly supports Sir David Walker's proposals to strengthen shareholder engagement with the boards of investee companies aimed at promoting good corporate governance. The letter makes clear that its rules do not stand in the way of Sir David's proposals".