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 responsible 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. (article continues below)
Ed Dymott, the head of UK fund partners at Fidelity Investment Management, says: “Investors typically do not respond to corporate action votes. Ideally, advisers should act as a proxy and vote on investors’ behalf.”
Martin Bamford, the managing director of Informed Choice, says: “I think it would create an awful lot of work for the advisers.”