Pension Funds Challenge London Stock Exchange Governance Rules
- An alliance of 87 council pension schemes in the UK is concerned about potential weakening of corporate governance standards at the London Stock Exchange.
- The Local Authority Pension Fund Forum has reached out to LSE chairman Don Robert multiple times without receiving a response.
- The ongoing criticism reflects a broader concern among pension funds about maintaining strong governance in listed companies.
In the United Kingdom, an alliance of 87 council pension schemes, managing assets worth £350 billion, has intensified its criticism of the London Stock Exchange (LSE). The Local Authority Pension Fund Forum has expressed concerns regarding the potential weakening of corporate governance standards in listed companies. They have reached out to Don Robert, the chairman of the London Stock Exchange Group, multiple times, seeking justification for claims that previous listing rules were detrimental to London’s financial market. Despite sending a third letter of complaint on August 30, the forum has not received a response from Robert. The forum has also raised issues regarding the role of LSE chief executive Dame Julia Hoggett, suggesting that her actions could negatively impact the integrity of the exchange. This ongoing dispute highlights the tension between pension funds advocating for strong governance and the LSE's push for regulatory changes that may compromise those standards.