Monday, 25 March 2013

Europe: Commission publishes green paper on long-term financing of the European economy

The European Commission published a green paper today titled Long-term financing of the European economy, the purpose of which is to begin a debate on how to foster the supply of long-term financing and improve and diversify the system of financial intermediation for long-term investment in Europe: see here (pdf). Amongst the many questions asked were the following concerning corporate governance: what kind of incentives could help promote better long-term shareholder engagement? How can the mandates and incentives given to asset managers be developed to support long-term investment strategies and relationships? Is there a need to revisit the definition of fiduciary duty in the context of long-term financing? The green paper notes one suggestion which could be subject to further consideration: enhanced voting rights or dividends for long-term investors.

For further information see: press release | FAQs | green paper (pdf) | accompanying working document (pdf) |

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