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AIC responds to Law Commission paper on share ownership

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11 November 2020

The AIC welcomes the paper’s proposals to empower retail investors.

The Association of Investment Companies (AIC) has responded to the Law Commission’s Scoping Paper ‘Intermediated securities: who owns your shares?’. The paper explores the advantages and disadvantages of holding investments through intermediaries such as platforms, brokers and banks, and suggests possible reforms.

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC), said: “We welcome the Law Commission’s contribution to this debate and are supportive of its proposals to empower retail investors. The growth of platforms has helped thousands of investors to invest in an efficient and cost-effective way, but it’s important that shareholders can continue to exercise their rights to vote, attend general meetings and receive relevant information. This is vital to good corporate governance and ensures shareholders can have their say.

“We would hope platforms and other intermediaries would want to facilitate these rights without being forced to do so by legislation. This would demonstrate a commitment to high governance standards, shareholder democracy and customer service. We would strongly encourage intermediaries to take further steps in this direction.”

 

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Notes

  1. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 358 members and the industry has total assets of approximately £209 billion.
  2. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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