The Treasury has endorsed a new action plan from the Investment Association, which commits buy-siders to pay structures that are aligned with asset owners best interests.
The Productivity Action Plan pledges that the Investment Association’s members – who look after £5.5 trillion in cash for investors – will develop capital markets, simplify incentives and overcome regulatory impediments.
Andrew Ninian, director of corporate governance at the Investment Association, said: “The Action Plan seeks to deliver ambitious and achievable remedies to the ills of some of the most serious causes of short-term thinking in the British economy.
“The investment industry remains steadfast in its commitment to play its part in fixing the UK productivity puzzle…”
Commercial secretary to the Treasury Lord O’Neill endorsed the plan, saying that long-term investment is crucial to boost productivity in in the British economy.
The Action Plan was also endorsed by the Financial Reporting Council that said that the proposals are closely aligned to its own principles.