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IMA rejects EC short termist complaints
Wednesday 6 April 2011 - by Dave Goodman
The Investment Management Association has hit back at the European Commission's green paper on corporate governance, claiming there is no evidence that asset managers are short termist.
The Commission's consultation paper released on Tuesday, says that asset managers were guilty of "too much short term thinking" leading to "disastrous consequences".
However the IMA criticised the paper, saying that the charges it levied against the industry were unfounded.
Liz Murrall, director of corporate governance and reporting at the IMA, said: "We do not accept statements that suggest asset managers are motivated by short term considerations. The great majority manage clients' money in ways that seek to build value over the long term.
"The paper suggests that regular monitoring of performance and the payment of fees on a quarterly basis create a short term approach. There is no evidence for this - while performance is monitored regularly, clients award new mandates based upon performance over five years or more.
"The Green Paper addresses some important issues, but certain charges do not stand up."