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‘Let advisers act as proxy to vote for investors’

Fidelity is calling on the FSA to give advisers powers to act as a proxy for voting rights on corporate actions on behalf of their clients.

Last week’s platform paper calls for platforms, stockbrokers and Isa and Sipp firms to be res-ponsible for contacting the end investors on potential notifications. According to FundsNetwork, the last three months alone have seen 27 fund name changes, 44 objective changes, nine closures, three mergers and 47 launches or provider changes.

Fidelity says it would be easier for the adviser to take action on behalf of clients so they can decide whether to communicate or vote on the change.

Fidelity Investment Management head of UK fund partners Ed Dymott says: “Investors typically do not respond to corporate action votes. Ideally, advisers should act as a proxy and vote on investors’ behalf.”

Informed Choice managing director Martin Bamford says: “I think it would create an awful lot of work for the advisers.”

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  1. Doesn’t sound very well thought out to me – surely this falls within article 37 RAO (managing investments) – esp. when you compare it to the article 53 (advising) wording? Looks like a horrible trap that IFAs could walk into and get really hurt by.

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