Directors: Fund firms risk scorn

Michael Bow
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THE INSTITUTE of Directors has warned the fund management industry is “ripe for investigation” as it unveiled its key priorities in its corporate governance manifesto.

The influential lobby group’s director general Simon Walker said there was an “alarming lack of transparency” around fund management pay and warned managers risked becoming “the new investment bankers” as targets for public scorn.

It came as the institute unveiled its manifesto recommending that the government should work with regulators to create more transparency in the system. It also urged fund managers to disclose how they vote on issues at annual general meetings.

The call comes amid a widely anticipated Financial Conduct Authority review into competition and charges within the sector, expected to launch this year.