Shareholder Rights Directive II (SRD II)

IPS CAPITAL LLP

Shareholder Rights Directive (SRD II)

SRD II is EU legislation which aims to promote effective stewardship and long-term investment decision-making by enhancing transparency of engagement policies and investment strategies across the investment community.

Under the rules implemented by the FCA, we are required to develop and publicly disclose a SRD II Engagement Policy on a “comply or explain” basis.

The Engagement Policy, amongst other thing, should provide investors and shareholders information on how we engage in dialogue with companies we invest in, exercise voting rights, and how we manage actual and potential conflicts of interest.

The policy will also provide details on the investment approach taken when considering relevant factors of the investee companies, such as strategy, financial and non-financial performance and risk, and applicable social, environmental and corporate governance factors.

IPS Capital is currently in the process of assessing whether it will need to publish a SRD II Engagement Policy, and aims to either publish the policy by 1st September 2019, or provide an explanation if one is not required.