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<p>Fiduciary duty – and the role it plays in ensuring that those managing money do
so in the best interest of their beneficiaries – is an important part of any successful
financial system.</p><p> </p><p>The government recognises that investors and pension
trustees would like further information and clarity on how best to fulfil their fiduciary
duty, particularly in the context of the transition to net zero and investment in
productive finance.</p><p> </p><p> </p><p>That is why the government is supporting
further consideration of these issues.</p><p> </p><p>The government published a call
for evidence on Pension Trustee Skills, Capability and Culture on 11 July which sought
to understand whether fiduciary duty contributes to risk avoidance in the investment
supply chain, to the detriment of pension savers. We will be publishing our response
later this year.</p><p> </p><p>In addition, to support investors, DWP committed in
the revised Green Finance Strategy to examining how closely their Stewardship Guidance
is being followed, including whether incorrect interpretations of fiduciary duties
are playing a role in limiting investor’s decision making.</p><p> </p><p>Moreover,
the Financial Markets and Law Committee – which includes DWP and HMT representatives
– is currently considering issues around fiduciary duties and sustainability, and
whether further action or clarity from the government or regulators is needed.</p><p>
</p><p>The government would expect questions around international comparators to be
raised as part of these discussions, where those comparisons are relevant. Any additional
action or clarity on the definition or interpretation of fiduciary duty will be made
in line with UK legislation.</p>
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