An alliance of council pension schemes has criticised the London Stock Exchange (LSE) over proposed changes to Financial Conduct Authority listing rules.
The Local Authority Pension Fund Forum voiced concerns about the reforms on two occasions in May, arguing they could undermine boardroom standards and investor protections.
The forum, which is made up of 87 council pension schemes collectively managing assets worth £350bn, urged Don Robert, chairman of the parent London Stock Exchange Group (LSEG plc), to justify claims that the old listing rules were damaging London.
The forum also raised concerns about the influence of the Capital Markets Industry Taskforce (CMIT) on corporate governance rules, particularly regarding boardroom pay and shareholder engagement.
In a letter in August following up on the first two, the forum’s chair Cllr Doug McMurdo said the composition of the CMIT was ‘wholly unrepresentative of investor (asset owners) interests’, adding that it would like to understand ‘how—or whether—the board of LSEG plc could have considered otherwise.’
‘It is a case study in how governance of capital markets should not be conducted,’ he added.