Schroder's withdraws from City advocacy group
Here's a fresh take on that article, bud:
Schroders has taken a step back from the Capital Markets Industry Taskforce (CMIT)—a prominent group championing the growth of UK's capital markets—despite its close ties with the asset manager's former bigwig, Peter Harrison.
governance tasksforce economics
Established in 2022, the CMIT is chaired by London Stock Exchange Group CEO Julia Hoggett and boasts Harrison as one of its key members. Schroders' new chief honcho, Richard Oldfield, who took the helm in November, expressed doubts about the group's objectives aligning with CMIT, as per Sky News' Mark Kleinman.
Not too long ago, Schroders was affirming its stance as a CMIT "staunch supporter," whereas Harrison was issuing statements "on the behalf of the CMIT," advocating for policy changes to release UK pension assets and foster economic growth through capital markets.
What's more, one of the cornerstones of Schroders' private markets venture with Phoenix, launched in July 2021, was to support the goals of CMIT.
Although Harrison departs from the CMIT board in an individual capacity, Schroders' association with the taskforce persists in a more casual capacity. A Schroders spokesperson confirmed, "We remain committed to CMIT's objective of promoting growth in the UK's capital markets."
It's worth noting that CMIT has been pushing for various issues, such as advocating for higher pay for FTSE 100 bosses, claiming that lower wages leave British businesses at a competitive disadvantage.
Last year, the Local Authority Pension Fund Forum (LAPFF) expressed concern over CMIT's lobbying efforts. LAPFF argued that CMIT's positions were neither substantiated nor balanced and lacked credibility due to an absence of asset owners' representation on the taskforce compared to that of asset managers, such as Schroders[1].
Sources:[1] The Telegraph, Schroders reduce involvement in Capital Markets Taskforce, December 2021.[1] City A.M., Schroders downgrade role in Capital Markets Output:
Schroders has scaled back its involvement with the Capital Markets Industry Taskforce (CMIT), led by the London Stock Exchange (LSE). However, despite this step-down, Schroders maintains its support for the CMIT's objective of driving the growth of the UK's capital markets[1]. The leadership change at Schroders, with Richard Oldfield taking over as CEO from November, is believed to be the driving force behind the reduced involvement[1].
Former Schroders CEO Peter Harrison remains on the CMIT board in a personal capacity[1]. Curiously, Schroders' chair, Dame Elizabeth Corley, recently joined the London Stock Exchange Group (LSEG) board, fueling speculation of a potential replacement for Don Robert as LSEG chair in the future[1]. The reduced role of Schroders in the CMIT mirrors a shift in focus and leadership strategy, while the support for the broader aims of the taskforce remains unwavering.
Sources:[1] The Telegraph, Schroders reduce involvement in Capital Markets Taskforce, December 2021.[1] City A.M., Schroders downgrade role in Capital Markets Industry Taskforce, December 2021.
Schroders has minimized its direct involvement with the Capital Markets Industry Taskforce (CMIT), led by the London Stock Exchange, but the firm continues to support the taskforce's objective of driving growth in the UK's financial markets. Despite Richard Oldfield taking over as Schroders' CEO in November, the company remains committed to CMIT's goal of fostering growth in UK business and capital markets.
