23 November 2016

David Pitt-Watson Talks About New Report on Corporate Governance in the EU

Posted In: Corporate Governance

European union flag against parliament in Brussels, Belgium

CFA Institute recently released a report entitled Corporate Governance Policy in the European Union: Through an Investor’s Lens. It is co-authored by two seasoned investors and luminaries in the field of corporate governance: George Dallas, policy director at the International Corporate Governance Network, and David Pitt-Watson, executive fellow at the London Business School.

Here, in a series of videos, David Pitt-Watson shares his thoughts on corporate governance, illuminating the key messages and recommendations from the report.

Why is corporate governance important for capital markets?

The report examines the state of the European corporate governance policy agenda, taking stock of reforms introduced over the past decade.

Review of the governance policy landscape: What has been achieved so far?

To inform the report, CFA Institute engaged with more than 30 investment practitioners, governance experts, and other stakeholders from across Europe through a series of workshop discussions held in London and Brussels. These workshops found that there is much to be done to simplify mechanisms to enhance corporate accountability and realise maximum value from reforms that have already been undertaken.

How can corporate governance be improved in Europe?

The report also considers the different models of corporate governance and the needs and expectations of shareholders and other stakeholders, in order to identify a sweet spot for the policy agenda.

A philosophical look at models of corporate governance: Can the shareholder, stakeholder, and open market perspectives be reconciled?

The investment management profession has a role that it needs to play to advance good corporate governance, and the report concludes with calls to action for not only the industry, but also for European policymakers, companies, and society as a whole.

What is the role of the investment management profession in advancing the corporate governance agenda?

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Tags: Best Practices and Regulatory Issues, corporate governance, European regulatory reform

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About the Author(s)

Rhodri Preece, CFA

Rhodri Preece, CFA, is Senior Head of Industry Research for CFA Institute. He is responsible for building and maintaining the global research function at CFA Institute, including leading the planning, coordination, and creation of research content across CFA Institute research platforms, which include the Future of Finance, the CFA Institute Research Foundation, the Financial Analysts Journal, and the Enterprising Investor blog. Preece formerly served as head of capital markets policy EMEA at CFA Institute, where he was responsible for leading capital markets policy activities in the Europe, Middle East, and Africa region. Preece is a former member (2014-2018) of the Group of Economic Advisers of the European Securities and Markets Authority (ESMA) Committee on Economic and Markets Analysis. Prior to joining CFA Institute, Preece was a manager at PricewaterhouseCoopers LLP where he specialized in investment funds.