What is the issue?
The Law Commission draft report on fiduciary duty is too conservative, saying that trustees “may” consider ESG factors whereas the need is for a statement that they “should” consider such factors. The subject is complex and needs careful argument and engagement.
What will the project try to achieve?
UKSIF will use its membership and expertise to draft a serious and detailed response. In particular the project will:
Support the preparation of UKSIF’s response by providing funds for legal and other support
Finance a review of how the response’s arguments may be applied to anticipated UK, European and global policy consultations over the next 18 months
Who might be interested in this project?
The Law Commission. After engagement to date the LC accepts certain gaps exist in their consultation paper and we believe they will welcome a submission which addresses these. Institutional assert owners of all kinds. Fiduciary duty is an uncertain concept in the UK, hence the consultation, and our input will be of interest to asset owners of all kinds e.g. pension funds, foundations and charities.
The work has now been completed. Click here to view the press release by UKSIF explaining the position taken.