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November 2018

This month’s contributors are: Andy Agathangelou

Arnaud Houdmont

Transparency Task Force

Better Finance

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Rebecca Aston

Denis Kilroy


KBA Consulting

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Get in touch if you wish to place an article! Edition #31 November 2018

The official publication of The Transparency Task Force. FREE to members of the Transparency Task Force, membership of which is also FREE

3 New Special Interest Groups Announced 8 Upcoming Events 10 Press release: Econ Meps Adopt a Final Report on a “Basic PEPP [1]” That Will Hurt Pension Savers 12 Important lessons to be learned following FCA’s finding on Barclays Jes Staley attempt to unmask whistleblower, says CISI 16 Creating Wealth by Being of Service to Society - A New Understanding of the Economics of Listed Companies 24 The TTF Ambassadors 26 The TTF Teams 27 The TTF Advisory Board 28 The Directory of Pro-Transparency Organisations 32 Get Involved


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New Special Interest Groups Announced I am delighted to announce that the Transparency Task Force is launching several new Special Interest Groups. They will be included in the next round of quarterly conference calls, taking place week during commencing 7th January 2019; and you are very welcome to get involved. The calls just take 30 minutes so they are not too onerous at all. Here’s a quick overview on the new Special Interest Groups: Pensions The Pensions SIG will be looking to shine a light on issues in relation to Auto Enrolment, DC Pensions and DB Pensions. As with all our Special Interest Groups it will be down to its members to decide what we will focus our attention on but here are the sort of issues likely to be of interest: • Error rates in AE • Scheme selection issues in AE • Value for money • The Net Pay/Relief at Source scandal • Regulatory arbitrage between GPPs and MasterTrusts • Exploring whether DB liabilities should be recalibrated • The Pensions Dashboard Investment Consulting & Fiduciary Management

This new SIG has been created as a response to the Competition & Market Authority’s investigation into the investment consulting and fiduciary management sector. The CMA are recommending significant changes to the sector to deal with issues that are thought to be preventing the best possible outcomes for investors; and it is thought that they might be bringing the sector within the regulatory perimeter. The SIG is for individuals that like the idea of working collaboratively with like-minded people to help improve the way the sector operates; particularly in relation to the areas that the CMA have been critical of. Governance, Compliance, Risk, Legal & Regulatory The financial services sector is profoundly important to the wellbeing of society. It is a sector that has to be trusted to function correctly yet it often behaves in a manner that leads to distrust. In fact, according to the Edelman Trust Barometer, financial services is the least trusted sector of all; that’s a systemic problem to be solved. Governance, Compliance, Risk, Legal and Regulatory professionals have a vital role in keeping the financial services sector “on the straight and narrow” and by doing so they can help to protect consumers’ interests whilst restoring trust and confidence in the sector.

Communications Transparency generates data that has the potential to be useful. Whether it is useful or not depends on how well the data is turned into clear and intelligible information; and that’s the job of communications and communications professionals. Our new communications SIG is for individuals that like the idea of working collaboratively with like-minded people to help improve the standard of communications throughout financial services. Fintech Financial Technology is a natural ally of transparency and all that the TTF is looking to achieve, because: • Fintech makes possible the systematic production and reporting of data that consumers need to make well-informed decisions about financial matters • Fintech can drive down the sector’s cost base through enhancing and harnessing interoperability; thereby enabling consumers to get better value for money from the financial products and services they use

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• Fintech can drive interoperability across the industry as a whole, providing the consumer with a more “joined up” user experience as well as far superior data security TTF’s new Fintech SIG is therefore for individuals representing organisations that have technologies available that positively align with the TTF’s overall aims and objectives to help drive better outcomes for consumers. Financial Planning Financial Planning, when done well is hugely valuable but there is a great deal of variance in the levels of quality, transparency and professionalism in the sector. It is clear that whilst some financial planners operate to the very highest ethical standards (thereby embracing transparency as a force for good); others seem not to. This new SIG is for those in the financial planning sector that want to drive greater professionalism into the sector. Frequently asked questions about our Special Interest Groups Q: Is there a cost to join any of the Special Interest Groups? A: No. Q: Would I be obliged to do anything in particular? A: No - you can be involved as much or as little as you want Q: What is the guiding principle that the TTF and its Special Interest Groups abide by? A: We are always seeking to build consensus around our North Star Question which is


“What is best for the consumer?” Q: How do the Special Interest Groups get formed and how do they Q: Would I be obliged to think decide on their campaign objecabout issues in a particular way? tive(s)? A: No - we welcome and want a wide range of views; you’ll be free to “say it as you see it” Q: How do the Special Interest Groups operate in practical terms? A: We have quarterly conference calls that last half an hour, so it’s not too onerous at all. Furthermore, there is no need for you to make every call, just those that happen to be convenient for you? Q: Where can I find the details of the next quarterly conference calls? A: See the table at the bottom of this web page https://www. teams-of-volunteers/ where you will find full details about timings of each of the calls and also the dial-in details you need. Q: What happens between the quarterly calls? A: Each of the Special Interest Groups has one or more campaign objective. If you want to be involved in helping to drive that particular campaign forward you might want to pick up some of the actions and responsibilities necessary; it’s a team effort but it is entirely up to you whether you pick up any actions Q: Can I be in a Special Interest Group but basically just “sit on the side-lines”? A: Yes you can. We would hope that as time went by you would want to participate in our activity but there is no compulsion for you to do so

A: Generally speaking we follow these steps; always building consensus through frank and open discussion as we go and always seeking to work together in a civilised, cooperative and collaborative manner: • Step 1: We identify a part of the financial services sector that we believe could function in a better way for the consumer • Step 2: We reach out to people with subject-matter expertise in that particular part of the market who might be keen to work collaboratively with others to help improve the way that part of the market functions • Step 3: We organise and mobilise the volunteers into a solution-orientated Special Interest Group • Step 4: We facilitate the development of the Special Interest Group’s objectives and a pragmatic campaign strategy to achieve those objectives • Step 5: We liaise with relevent members of the press, regulators, parliamentarians, government officials, leading academics, thought leaders and so on to create supportive engagement, analysis and insight • Step 6: We implement the campaign strategy, which is normally a combination of activities such as research, producing White Papers, running Thought Leadership events, responding to consultations, holding meetings with key decision-makers and influencers, raising awareness through the press and so on • Step 7: We continue to facilitate

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the ongoing development of the Special Interest Group’s work Q: Can I join more than one Special Interest Groups? A: Yes, please do! - we could do with as much involvement as we can possibly get Q: Can I ask my friends, colleagues and acquaintances to consider getting involved? A: Yes, please do! - the TTF has grown by word of mouth so we would appreciate you doing whatever you can to let people you know have a chance to get involved. Please forward them a link to this web page https:// www.transparencytaskforce. org/teams-of-volunteers/ so they can read about what we are doing and decide for themselves if they want to be included What are the Special Interest Groups that are already established? We have over 350 people involved with our existing Special Interest Groups and we are always looking for new members for them too. The existing SIGs are: Anti-Scams Many scam victims have been battling for years to try to get the justice they deserve. In some cases they have lost everything; there have even been some that have paid the ultimate price for the criminal activities of monstrous individuals that have tricked them out of their life savings and pension funds. This SIG is doing all it can to try to help scam victims by providing them with support. We are also doing

all we can to try to prevent scams from happening in the first place, particularly pension scams. Please get involved if you need help or if you want to help; or both. Asset Management This SIG is about encouraging the world’s Asset Managers to behave in a more progressive and pro-consumer way; to be more determined to put their clients’ interests first, wherever possible. The overall purpose is to facilitate collaboration between asset managers that have a more enlightened and progressive approach than most, to drive better outcomes for their clients. The SIG was launched in response to the Financial Conduct Authority’s Asset Management Market Study which was justifiably critical of the way some Asset Managers have been operating. The leading campaign initiative has been to re-energise the idea that asset managers should work to a code of conduct, centred around looking after the interests of their clients as best as they can. PISCES This SIG is about the world’s capital markets becoming a ‘force for good’. To explain the name of the SIG: the P is for Purpose; I is for Impact Investing; S is for Sustainability; C is for Corporate Social Responsibility; E is for Environment, Social and Governance; and S is for Socially Responsible Investing. There is tremendous scope for the way the financial services sector influences what happens in our world and this SIG’s lead campaign is what we call “Mandatory Fact-Finding,”

an idea that financial advisers should establish whether their clients have any values-based preferences (for example, to not invest in a manner that worsens climate change) before recommending a suitable investment fund. Market Integrity The Market Integrity SIG consists of over 50 senior executives from Financial Services Trade Bodies, Professional Associations, Standards Boards and similar; all working together to improve the overall effectiveness of the UK’s Financial Services Codes of Conduct, with a view to positively impacting market behaviour. The ground-breaking work of this Team will help to improve outcomes for consumers and help restore confidence in the Sector by raising the bar in terms of the standards of ethics, professionalism, conduct and integrity. The team has been liaising with the Financial Conduct Authority, which has an inherent interest in the topic if market integrity. Banking Our Banking SIG has been campaigning for the Banks to treat their business and retail customers in a more transparent way; for example, by changing the way Banks describe their ‘free if in credit’ current accounts and how charges are applied. The highlight so far has been the publication of a well-received White Paper on our reform proposals, presented at special meeting held at the House of Commons in June 2017 and Chaired by Lord Cromwell. The event and White Paper was covered by

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The Times. Very good progress has been made on the opacity of costs and charges front; and the SIG is now looking at what more can be done for Banks to properly support those that have been scammed. One of the SIG’s leaders, Heather Buchanan, is Director of Policy & Strategy at the All Party Parliamentary Group on Financial Stability; which the team actively supports. Foreign Exchange The Foreign Exchange market is full of opacity that adversely affects consumers and even institutional investors. Our FX SIG published a constructive critique of the Global FX Code in July 2017, explaining why the Code doesn’t go far enough to make costs in FX sufficiently transparent. The White Paper drew acknowledgement and response from the Competition & Markets Authority and the Economic Secretary at HM Treasury. The SIG continues to shine a light on the reforms needed to help create a fair, transparent, competitive and efficient FX market that delivers value for money to the individuals and institutions that use it. Financial Stability The Financial Stability SIG was launched on 13th September 2017, at a Transparency Symposium held in London entitled “It must never happen again!”. The event was all about the causes and consequences of the Global Financial Crisis and in particular the part that a lack of transparency played. The date of the event was chosen because it marked the 10-year anniversary, to the day,


that Northern Rock collapsed. The Financial Stability SIG has been working together to establish what more can be done by Governments and Regulators around the World to build greater resilience into the financial ecosystem. This is important work because the overall conclusion from our 13th September event is that despite the fact that we are ‘10 years on’ from the Global Financial Crisis there are many risks that have still not been mitigated fully. We want to shine a light on that, in a collaborative, constructive and consensus-building way. The SIG produced a White Paper entitled “Ideas to help reduce the chance of another Global Financial Crisis” which we presented at the House of Commons on 7th February 2018. The meeting went very well; so much so that it has initiated the creation of an All Party Parliamentary Group on Financial Stability; we are very proud of that – over 15 Parliamentarians will be involved in developing fledgling policy initiatives for subsequent evaluation by organisations such as The Bank of England, The Financial Conduct Authority, The Financial Reporting Council and so on. Costs & Charges Transparency on costs & charges is so important because it will encourage a more competitive and efficient market and thereby generate better net results to savers and investors, particularly pensions savers. The highlights so far was a very special meeting held at the House of Commons in September 2016 that was Co-Chaired by Tom Tugendhat MBE MP. The event was the first ‘Trans-

parency Strategy Summit’ in the World, and dealt with the question: “What can we collectively do to help protect the UK’s pension savers from hidden costs and charges?” We presented our research on costs and charges; and it even got covered on the front page of the Financial Times. The Team continues to campaign for pro-consumer reform and has been highly engaged with the relevant UK Regulators and Government Departments, particularly the Financial Conduct Authority, the FCA’s Institutional Disclosure Working Group, The Competition & Markets Authority, The Pensions Regulator, The Financial Reporting Council, the Department for Work and Pensions and the Work and Pensions Select Committee. Furthermore, our efforts played an important part in the Work and Pensions Select Committee opening an enquiry into costs and transparency in pensions. APAC APAC is for people in Asia Pacific that want to work together to deal with opacity-related problems in their part of the world’s financial ecosystem. EMEA EMEA is for people in Europe, the Middle East and Africa that want to work together to deal with opacity-related problems in their part of the world’s financial ecosystem. GTI GTI is for people that are involved in developing our Global Transparency Index. This will highlight pro-transparency best practice around the world.

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It will allow countries to benchmark themselves against others in terms of how transparent their financial services ecosystems are (particularly their pensions industries). The Global Transparency Index is designed to be an invaluable resource for Governments and Regulators. Our initial focus is the UK, USA, Canada, Australia and the Netherlands and the GTI will be a ground-breaking development that will accelerate the rate at which the Financial Services industry around the world moves to a more transparent state; and therefore a fairer and more efficient state, enabling better outcomes for millions of people globally. Americas Americas is for people in The Americas, (North and South) that want to work together to deal with opacity-related problems in their part of the world’s financial ecosystem. Americas is particularly focused on campaigning for the widespread adoption of the Fiduciary Standard, which is all about advisers putting the interests of their clients before themselves. If you want to know more about our Special Interest Groups and to perhaps get involved you can read more and “sign up” here:

financial services industry to rebuild trust in the sector; and about the correlation between transparency, truthfulness and trustworthiness. The message delivered was that those of us who truly care about the importance of the Financial Services sector and the people it serves can, and should, work together to help put things right. We referred to the famous Margaret Mead quote: “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” Our call for right-minded people to “stand up, not stand by” landed well – people volunteered to get involved. Since then, through word of mouth, through our Transparency Symposia, through our coverage in the press including the Financial Times and Radio 4, through publication of the Transparency Times and through many speaking slots in the UK and overseas, more and more people have heard about our aims and objectives and stepped forward to get involved.

How did the Special Interest Groups started?

The response to what the Transparency Task Force is all about has been profoundly positive because professionally-minded people align very naturally with what we call our ‘North Star’ question: “What’s best for the consumer?”

The first Transparency Task Force meeting was held on 6th May 2015 at Senate House, London University. The meeting was about the need for the

Volunteers have been organized and mobilized into our Special Interest Groups; with each one being made up people with subject-matter

expertise and interest in a particular field. We started off with a handful of teams but we now have 18 including the new ones being launched in January. In total our Special Interest Groups have over 350 people involved; mostly in the UK but across 16 countries altogether. Each Special Interest Group is focused on at least one campaign objective. Our Teams are not just ‘talking-shops’ or a ‘whinge-fests’ – they are pragmatically undertaking work that can, will and already has made a difference. They are a consensus-building ‘coalition of the willing’, working together to be ‘part of the solution’. We are proud of our collective efforts to make a difference; especially given how little resource we have to work with. Each SIG has at least one campaign worthwhile project underway, designed to harness the transformational power of transparency to drive the much-needed change that the consumer deserves and the reputation of the Financial Services sector needs. Please get involved; you can “sign up” through this web page:

Edition #31 | November 2018 | | The Transparency Times


UPCOMING E VENTS Time for Transparency “Accelerating our journey towards a green economy, before it’s too late!” Monday 17th December

Sacker & Partners LLP, 20 Gresham St, London EC2V 7JE

For any enquiries about the above event please make contact through

There’s no question that we are exposed to many serious challenges in the world right now. We are having to face up to serious political, social and economic challenges; none of them have easy solutions. However, in the overall scheme of things, nothing; absolutely nothing is nearly as important as taking care of our planet. Everything we have, everything we are and everything we might one day become is dependent on the wellbeing of a planet we are all fortunate enough to live on; a planet we are collectively harming; minute by minute. According to many experts, we are getting perilously close to the point of no return; i.e.


the point at which we become fated to harming our world so much that its wellbeing (and therefore ours on it) is irreconcilably jeopardised.

things is if all parts of the world economy in all parts of the world morph into a new, green form of themselves that is no longer toxic to the planet.

Any serious analysis of global warning results in one stark conclusion: unless mankind makes drastic changes to first halt and then reverse our awful impact on a planet as fragile as it once was immaculate we are destined to climate catastrophe.

Unless we accelerate to a green economy before it’s too late the it will be…too late. It isn’t rocket science; sadly, it’s becoming blindingly obvious to everybody except those that are suffering such an extreme form of cognitive dissonance that they are in denial. Fortunately, in relative terms there aren’t that many of them. Unfortunately they include the most powerful person in the world.

So, in plain and blunt English: unless there is a massive and authentic commitment to pretty drastic change we’ve most probably going to wreck the one thing we shouldn’t take for granted; our world. We don’t have a spare one. The only possibility to reverse

Every part of the world economy needs to adapt; and every part of the world’s economy has the potential to make a signif-

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icant difference; none more so than the financial services sector. There is no doubt that despite its many shortcomings can be enormously influential. The world’s capital markets have the potential to unlock the truly awesome power of money and use it to strategically overhaul the flows of capital. We know that the way money is utilised can have an enormous impact on the behaviour of individuals, organisations, markets, societies and countries. We need money to go where it can do real good in the real economy; and to stop going to where it is doing harm.

a part in driving the reforms necessary. But we can do more than just follow the direction given to us by regulators. We, the financial services industry as a whole can share in the responsibility for leading the way.

However, that’s going to take an enormous change to the way the world’s financial ecosystem works. We need to think about many things very differently. The good news is that in the UK at least all our financial services regulators are gearing up to play

We will also be addressed by subject matter experts who will “say it as they see it” and in so doing alert us to just how serious our planetary predicament has become.

Now is a time for leadership; and on that basis this is a going to be a very important symposium. We are creating an opportunity for the Financial Conduct Authority, the Pensions Regulator, the Bank of England and the Financial Reporting Council to share with us what they are planning to do to drive the change necessary.

“What can we do to accelerate our journey towards a green economy, before it’s too late?” We think the answer is “quite a bit, actually” because we believe that there is significant scope to improve the way the financial services sector influences what happens in our world. If you are on the same wavelength, please enquire about the event without delay - please don’t ‘stand by’, please ‘stand up’ - we need all the help we can get to galvanise support for radical and rapid reform before it is too late. If the symposium might be of interest please get in touch without delay through

The key question this symposium will be responding to is:

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Arnaud Houdmont | Chief Communicaitons Offic

BETTER FINANCE wishes to stress that providing PEPP is critical for their future pension adequacy. Better Finance is happy to see that the MEPs approved some of the improvements for pension savers it has been supporting, such as: - the collective redress provision, - the right for independent saver associations to subscribe a PEPP on behalf of their members (the inclusion of these associations as subscribers of PEPP products was indeed important as these associations have proven to be very effective in providing a better balance to the relationship between providers and pension savers), - the annual fee cap of 1% for

the basic PEPP, - and the disclosure of the past performance of the PEPP since its inception and not just for five years (however, there is no requirement to also disclose the provider’s benchmark performance alongside that of the PEPP itself – as currently required for UCITS funds, thus preventing PEPP savers from assessing whether the provider has met its performance objectives or not). However, despite BETTER FINANCE’s repeated warnings and meetings with representatives of the EU citizens at the Parliament, the ECON committee today decided to adopt a

capital “protection” scam for the “basic PEPP” which is clearly against EU consumers. BETTER FINANCE on several occasions raised the fact that capital protection implies that the notion of “capital” must be calculated on the basis of the amounts saved before the deduction of all accumulated fees, charges and expenses directly or indirectly borne by investors, and if possible in real terms (offsetting the very negative impact of inflation over time). However, after a promising draft report, the final version of article 2(21) will unfortunately rip off savers who choose the


cer | Better Finance

EU citizens with a really safe y. basic PEPP because of its capital “protection” feature: over the long-term, accumulated fees and inflation will destroy both the nominal and real value of this “protection”. The draft report released earlier this year was much friendlier to EU savers as it provided that “capital protection shall allow the PEPP saver to recoup the capital invested, including fees, costs and inflation[4]”. Guillaume Prache, BETTER FINANCE’s Managing Director stressed that “we are shocked to see MEPs proposing to protect pension savers by guaranteeing them to recover in all likelihood less than 30 % of the purchasing power of their pension savings after 40 years. Worse: all this without informing or warning them! It is beyond our understanding how anyone caring about the future of EU savers could support this approach and not even inform the consumers about the very poor real value of such a “capital protection”. We may soon witness the worst mis-selling scandal ever seen in EU rules. “

Arnaud Houdmont joined the team at Better Finance following a varied and multi-facetted career in the world of communication, press relations and research at the heart of Europe. During this time he worked closely with policy makers from the European Commission, the European Parliament and private sector stakeholders on topics such as youth employment, entrepreneurship, health policy, sustainability and innovation. Prior to this he earned a master’s degree in Global Communication from Goldsmith’s College (University of London) and a bachelor’s degree in International relations from Sussex University. His studies and career have given him a critical and analytical insight in a range of issues, as well as a profound knowledge of the political economy, media and the European institutions. On a personal level Arnaud is fascinated by all aspects relating to sustainable development and political economy. At Better Finance, Arnaud is responsible for all communications activities and the continued development of an inclusive communication strategy aimed at reaching all interested parties and stakeholders. He speaks fluent Dutch, English and French and has a very good working level of Spanish.



by Rebecca Aston | Head of Professional Standards | C

The FCA fining of Barclays CEO Jes Staley followin whistleblower shows important lessons need to b The result – a fine – could be seen as rather anti-climactic, particularly considering the amount of time the investigation has taken, but there are reasons why this sanction represents a significant move forward in whistleblower protection. This is the first time the FCA have imposed a fine on a sitting Chief Executive – so this finding will have senior leaders of other UK banks taking notice and dusting off their firm’s whistleblowing policies! It also sends a clear message that training on whistleblowing policies within financial services organisations is essential, even (or especially) in the board room. Finally, this finding demonstrates that the FCA are prepared to take steps to protect the sanctity of a report by any whistleblower – even if the concern they raised is not upheld.

There are lessons to be learned from this experience by the FCA, Barclays and financial services firms in general. Notably, the length of time taken for this investigation may be a cause for concern for

future whistleblowers. A year for this type of investigation feels excessive, and in this case seemed to increase expectations that more severe action would be taken. Additionally, an unseen and

unknown consequence of the length of time it took to reach a finding could be that potential whistleblowers within Barclays, and financial services more generally, may have put off raising concerns (particularly if they involved senior managers) until finding out whether action was to be taken against Staley. What assurances can the FCA offer those working in financial services that it will not take so long to reach a finding if another attempt is made to unmask a whistleblower in the future? This finding does not represent the end of this journey for Barclays, or for whistleblowing in financial services. Instead, it is the start of the next chapter – which must begin with efforts to rebuild trust in whistleblowing policies and processes. Trust in a person or a process is not a guarantee – it is constantly evolving and must be maintained. As



ng his attempt to unmask a be learned. noted by Mark Carney, Governor of the Bank of England, in 2013 “Trust arrives on foot, but leaves in a Ferrari” (another way of putting this is that trust takes years to make, but just seconds to break). Trust is an essential part of the relationship between professionals and their clients, so professional bodies in financial services, including the CISI, have in recent years focused on building and maintaining public trust in the services offered by their members. The CISI’s ‘Speak Up’ initiative, which focuses on giving individuals working in financial services the tips, tools and moral courage to raise concerns within their organisations, is an important part of our work to build public trust in professionals and in financial services.

In order to demonstrate that the Barclays whistleblowing process can be trusted by potential whistleblowers, Barclays must be open about the lessons they have learned and communicate what steps they are taking to ensure it will not happen again. Furthermore, this is a step that must be repeated regularly in order to maintain trust once it is built. But these are not just lessons for Barclays. This incident has highlighted that we are all fallible, and that the importance of following proper whistleblowing procedures is a message that needs to remain visible, relevant and necessary for all individuals working within financial services. The CISI’s mission is to help members attain, maintain and develop their knowledge

Rebecca Aston (nee Doodson) is Head of Professional Standards at the Chartered Institute for Securities & Investment (CISI). She oversees the delivery of the Institute’s Integrity initiatives to members, supporter firms, and external stakeholders, with an aim to raise and uphold ethical standards in the financial services industry. Her areas of particular interest include Speak Up (whistleblowing), diversity and inclusion, behaviour and culture. Previously, Rebecca worked at the Association of Accounting Technicians (AAT) as Senior Conduct and Compliance Officer (2009-2014), with a focus on ethics and professional standards. Rebecca is a graduate of the University of York (BA Hons, History, 2008) and the University of the Arts London (PG Dip, Conservation, 2010). Additionally, in 2016 she completed a Masters degree in Applied and Professional Ethics from the University of Leeds, and achieved a Pass with Merit. In her spare time Rebecca is a tutor, on behalf of the University of Leeds, on the Institute and Faculty of Actuaries Professional Skills course.

and skills and to promote the highest standards of ethics and integrity in the securities and investment profession. Based in the City of London, with origins in the London Stock Exchange, the CISI is a global organisation with representative offices in financial centres such as Colombo, Dubai, Dublin, Edinburgh, London, Manila, Mumbai, Spain and Singapore. We work in close cooperation with regulators, firms and other professional bodies worldwide and over 40,000 examinations were sat in 80 countries in the last twelve months. With 45,000 members in 104 countries the CISI is the professional body

which sets examinations and offers qualifications for those working, or looking to establish a career in the financial planning, wealth management and capital markets profession.



A New Understanding of the Economics of List

by Denis Kilroy | Managing Director | The KBA

A seven-year R&D effort built on a foundation est has produced a new understanding of the econo profound implications for the business and inves This R&D program has also produced findings and insights with major implications for the governance of listed companies. Three are particularly significant. The first is that much of the behaviour that has eroded trust in the corporate sector in many countries in recent years, can be traced back to a misunderstanding as to how wealth is really created in listed companies. This misunderstanding affects many aspects of the way companies are governed and managed. It is particularly evident in executive reward plan design. The second insight is that as at 31 December 2017, there appeared to be a value gap or ‘innovation premium’ accounting for a quite significant component of the aggregate market capitalisation of the top 100 industrial companies (excluding resources and financial services stocks) listed on both the London Stock Exchange and the New York Stock Exchange. The figure for the LSE was just over


41 per cent and for the NYSE it was slightly more than 33 per cent. In each case, this figure represents a component of market value related to products, services, businesses or capabilities that don’t yet exist. (Share price movements since then have seen the LSE figure fall to level similar to the NYSE.) The third and most significant insight is that the best and perhaps the only safe way to deal safely with a value gap or innovation premium of this magnitude, and at the same time restore trust in the corporate sector, involves: • Companies adopting a very long-term perspective, and seeking to ensure that most if not all the wealth they create for shareholders is achieved in ways that enhance the wellbeing of all legitimate stakeholders, including the wider community and the environment; and • Investors supporting them in doing so. This new understanding has

the potential to catalyse a shift in thinking akin to that which occurred with the Total Quality Management (TQM) movement in the 1970s and 1980s – when Japanese engineers guided by W. Edwards Deming turned manufacturing on its head. By rejecting traditional quality control processes and choosing to ‘build in’ good quality rather than ‘inspect out’ poor quality, Japanese manufacturers broke the nexus between quality and price. No longer did high quality products have to be costly to produce. Instead, higher quality became the path to lower unit costs, and particularly lower ‘whole of life’ costs. The impact was revolutionary. In this case, the potential for positive change is even greater. Setting the Scene The period since the GFC has seen a lot of community concern expressed right around the world in relation to the actions of some elements within

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ted Companies

A Consulting Group

tablished over some 24 years, omics of listed companies, with stment communities. the business community, with the latest instalment playing out Australia’s Banking Royal Commission.

or even the environment.

In what may surprise many observers, our research suggests the most significant causal factor behind this behaviour may not be the prevailing culture, but instead:

In a conclusion that flies in the face of conventional thinking, and the myopic focus on short-term earnings outcomes we see daily in the business press, our research shows that top performing companies that create significant wealth for their shareholders on an ongoing basis, generally don’t outperform short-term financial performance expectations – and certainly not to any great degree.

• A major misunderstanding as to how wealth is really created in listed companies; together with • A failure to recognise that being in business is an opportunity to create wealth by being of service to society – not an opportunity to appropriate wealth in the name of shareholders, by exploiting customers, suppliers, employees, franchisees, the wider community

How Wealth is Really Created in Listed Companies

Instead they harness innovation and build capabilities, leading to the establishment of new and higher performance expectations, which they then either deliver, or go quite close

Denis Kilroy is Managing Director of The KBA Consulting Group – a boutique firm he established in 1994 after some ten years with LEK and value-based management pioneers Marakon Associates. He established KBA to pursue a more conscious and more socially responsible approach to business. This involved helping the leaders of listed companies build enduring institutions that could create value for customers and wealth for shareholders on an ongoing basis, in ways that enhanced the wellbeing of all legitimate stakeholders. The approach KBA developed is now documented in Customer Value, Shareholder Wealth, Community Wellbeing (Palgrave Macmillan 2017).

Edition #31 | November 2018 | | The Transparency Times


to delivering, over time. Importantly, they do this continually – year after year. This is evident from a series of studies we have conducted of companies listed on the NYSE, the LSE and the Australian Securities Exchange (ASX). The results of some of these studies are contained in our book ‘Customer Value, Shareholder Wealth, Community Wellbeing’ [Palgrave Macmillan 2017]. A detailed study of the 120 largest ASX-listed industrials over the seven years to 31 December 2016, revealed 49 top performers that created significant wealth for shareholders over five rolling three-year periods, 26 good performers that at minimum preserved wealth but in most cases created some wealth, and 45 poor performers that destroyed wealth over the same five periods. Among the top performers, none of the wealth created in aggregate came from outperforming expectations over the measurement periods. It all came from establishing new expectations to be delivered in

the future. For the good performers, 7% came from beating expectations and 93% came from establishing new expectations. (An almost identical picture emerged in an analysis of the S&P 100 over the five years to December 2015.) For both the top performers and the good performers, more than half the wealth created came from enhancing the sustainability of their businesses. This was a particularly significant finding. These findings stand in stark contrast to the virtual obsession with ‘stretch’ earnings and EPS targets we see in most executive reward plan designs. Importantly, expectations in all our studies were expressed in terms of economic profit (EP) not earnings. The EP stream required to justify each company’s share price at each point in time was identified using the EP Bow Wave construct described in this video and explained in our book. (For those who don’t have time to watch the video, we used EP expectations because their de-

livery can be linked accurately to capital market outcomes, whereas earnings and EPS expectations cannot.) Embedded within the share price of most better performing listed companies, is an expectation of a very long stream of positive EP outcomes. These are generally 40 years or more in length. They can be as long as 50 or even 60 years. In many cases, these long positive EP expectations include high returns, with ROE expectations 10 per cent or more above the cost of equity (Ke), and levels of growth well above underlying economic growth. Few would dispute that it is difficult if not impossible for a company to both grow and remain economically profitable (with ROE > Ke) for 40 years or more unless it sets out to create wealth in ways that enhance the wellbeing of all stakeholders. No stakeholder group is going to put up with being treated poorly for 40 years.

Figure 1. Progression in the Aggregate EP Bow Wave for the Top 100 NYSE Listed Industrials


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This means that to be truly successful over time, listed companies must consider all legitimate stakeholders as allies in the creation of wealth over the long term – not as adversaries in the pursuit of higher profits over the short term. A mindset in which employees, suppliers, customers or franchisees are looked upon adver-

stakeholders, to increase shortterm earnings in the misguided belief this will benefit the company and its shareholders; their actions have exactly the opposite effect. It is longerterm shareholders who foot the bill when the company is ultimately held to account. So, all shareholders should have a real interest in getting this right.

The EP Bow Waves for the NYSE industrials show a clear pattern of meeting expectations, a consistent expectation that EP will remain positive for 60 years, and a steady increase in the level of EP required to be delivered over that 60 years (although there was a more significant uplift in expectations in 2017).

Figure 2.Progression in the Aggregate EP Bow Wave for the Top 100 LSE Listed Industrials

saries in the pursuit of higher profits (in the misguided belief that doing so will create shareholder wealth), produces just the conditions needed for behaviours to emerge that undermine trust in the corporate sector. When compounded by self-interest and amplified by poorly designed incentive plans, this mindset has led to actions by some companies that have quite literally devastated the lives of ordinary people. The problem for shareholders is that when a company does exploit its customers, its suppliers, its employees, its franchisees or any of its other

Understanding Embedded Expectations Since the GFC, the EP expectations embedded in the aggregate market capitalisation of the top 100 industrials listed on the NYSE and the LSE have increased markedly. Figures 1 and 2 show their aggregate EP Bow Waves from 2010 to 2107. In each case, the curves represent the EP stream required to underpin aggregate market capitalisation as at 31 December each year. There are some significant differences between the two markets.

In contrast, the EP Bow Waves for the LSE industrials reveal somewhat erratic historic performance, and a marked increase in the level and the sustainability of EP outcomes required to justify the aggregate market capitalisation from 2013 onwards. If we break these embedd expectations down into their three components of returns (ROE-Ke), growth (in the equity capital base on which that returns is expected to be earned), and the sustainability of both; we see even more difference between the two markets. As at 31 Dec 2017, the top 100

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Figure 3. Expectations Embedded in Market Cap of the Top 100 NYSE Industrials – 31 Dec 2017

Figure 4. Expectations Embedded in Market Cap of the Top 100 LSE Industrials – 31 Dec 2017

NYSE-listed industrials were expected to not only maintain an aggregate economic profitability (ROE-Ke) of 10 per cent but expand it to nearly 13 per cent by 2017. This represents a material improvement in its own right and an expected outcome well above the average of 8.6 per cent achieved since 2001. At the same time, the equity capital base on which this would be earned was expected to more than double by 2027. The net effect of this was almost a trebling of the expected annual EP to $854b in 2027, and a further trebling to reach the peak expectation of more than $3.2 trillion in 2060. For the top 100 LSE-listed industrials, economic profitability was expected to fall by 1.5 percentage points over the next ten years (from 9.2 to 7.7 per cent). But the average


since 2001 had only been 2.8 per cent. This constitutes a step change in expectations in relation to economic profitability.

attributable to:

Over the same period, the capital base on which this new and much higher return was to be earned was expected to almost double. Aggregate EP was expected to increase by nearly 50 per cent to £70b in 2027, and then nearly double over the next 30 years to reach a peak expectation of £130b in 2055.

• Their competitive position in those markets;

Both represent quite ‘bullish’ expectations. Describing and Responding to the Innovation Premium An important feature of the EP Bow Wave construct is that for an individual company, we can disaggregate the EP Bow Wave implied by its market capitalisation, to determine how much of the expected EP stream is

• The economic attractiveness of the markets in which the company participates;

• The market’s view as to the underlying capabilities that exist within the company, leading to an ability to deliver new EP streams from products, services or businesses that don’t yet exist; and • The remainder, which we can consider a fundamental value gap. How this is done is beyond the scope of this article, but it is useful to provide an illustration. We have chosen Unilever Plc as a case study. The progression of EP Bow Waves embedded in the Unilever share price and market cap from 2010 to 2017 is illustrated

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in Figure 5. They expanded steadily from 2010 to 2016, but then shot up in 2017 in large part because of the market’s reaction to what the company did to fend off a bid from KraftHeinz. Figures 6 breaks down Unilever’s 2017 EP Bow Wave into its components, and Figure 7 shows the build-up of its market capitalisation implied by the build-up of the EP Bow Wave. We can think of the innovation

let-shaded EP Bow Waves captures the extent to which that innovation premium is underpinned by the leadership mindset, business model and organisational capabilities needed to deliver the future EP stream that constitutes the innovation premium. In December 2016 just prior to the Kraft-Heinz bid, Unilever’s innovation premium was assessed at 30.7 per cent of a market cap of £93.5b, of which 4.9 per cent was underpinned

A ‘glass half empty’ interpretation suggests there may have been a significant valuation risk associated with the Unilever market capitalisation in December 2017. A ‘glass half full’ interpretation is that contrary to the action it felt it had to take to fend off the bid from Kraft-Heinz, Unilever needed to invest to build the additional organisational capabilities it needed to justify its innovation premium. A 60year EP Bow Wave em

Figure 5. Progression of EP Bow Waves for Unilever – December 2010 to 2017

premium embedded in the share price of a listed company as being the present value of the difference in expected EP between the green EP Bow Wave (representing a fundamental view of the value of the business under its current strategy) and the blue EP Bow Wave, which is reverse engineered from market cap and must be delivered to justify that market cap. The difference between the green and the broken vio-

by organisational capabilities and 25.8 per cent was assessed to be a fundamental value gap. By December 2017, the innovation premium had expanded to 36.4 per cent of a market cap of £113.0b, of which 3.2 per cent was assessed as being underpinned by organisational capabilities and 33.2 per cent represented a fundamental value gap. There are two ways to interpret this picture.

bedded in the Unilever share price in December 2017 means this investment must focus on developing the capability to deliver significant additional EP streams that are very long-term in nature. And the understanding we have developed as to how wealth is really created, means this EP stream can only be built by acting in a manner that enhances the wellbeing of all legitimate stakeholders. Clearly the picture portrayed

Edition #31 | November 2018 | | The Transparency Times


in Figures 1 to 4 suggests Unilever is by no means alone in having a significant innovation premium embedded in its share price. And while stock prices have come off somewhat during 2018, this understanding still constitutes a major opportunity for the business and investment communities.

be highly motivated to build in good corporate behaviour rather than society having to inspect our poor behaviour; through ‘if not, why not’ guidelines, regulatory interventions or judicial inquiries. This is because the understanding presented makes it clear that the only way to build an enduring institution that can create

Rather than being fearful of a further and even more significant market correction, business and investment industry leaders can embrace the thinking presented and invest to achieve the outcomes needed to justify or underpin existing innovation premia, and at the same time make a truly significant and lasting positive contribution to the wellbeing of society. A Path Forward There are two aspects to the path forward. The first is to educate business and investment community leaders in relation to the breakthrough in understanding achieved. A recent debate in the Australian business press saw some strong views expressed regarding the ASX corporate governance guidelines, including the suggestion there may now be too many rules to which Boards must adhere. Perhaps we can simplify things by taking a leaf out of the Japanese engineers’ book – and invest in educating business leaders in relation to the understanding that underpins this article. With the right understanding in place, companies should


• The degree of alignment or disconnect between the returns, growth and sustainability of both that was achieved in the past, and what must now be delivered to preserve wealth and exceeded in order to create wealth, • How much of the innovation premium already embedded in each company’s share price is justified; and • What each individual company needs to do to establish an ability to create wealth in ways that enhance societal wellbeing (or augment such an ability if it is already in place).

wealth for its shareholders on an ongoing basis, is to deliberately set out to create wealth in ways that enhance the wellbeing of all legitimate stakeholders, including the wider community and the environment (i.e. societal wellbeing). The second aspect of the path forward relates to the need to provide more detailed and regularly updated information at an individual company level, a sector level and at a market level (NYSE, LSE etc), to help companies and their investors embrace the thinking we have presented, as well as to be able to assess progress towards developing the ability to create wealth in ways that enhance societal wellbeing.

As we have illustrated in the case of Unilever, the EP Bow Wave underpinning its share price and giving rise to its innovation premium is very long – 60 years long. It will only be possible for companies to elevate their version of the violet-coloured bow wave shown for Unilever in Figure 6, by setting out to create wealth in ways that enhance societal wellbeing. As a consequence, when they do, any increases achieved in this component of company’s market value will provide a broad indicator of the extent to which a company is making a positive contribution to societal wellbeing. Further information in relation to the ability to provide this analysis for individual companies, for sectors, for markets or for investment portfolios, can be obtained from KBA (info@

The capability to do this now exists, and includes being able to demonstrate:

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Figure 6. Build-Up of Unilever’s December 2017 EP Bow Wave

Figure 7. Components of Unilever’s December 2017 Market Capitalisation

Edition #31 | November 2018 | | The Transparency Times


The Transparency Task For

While we value every member of our campaigning com They are particularly aligned to our cause and, as such, positive change. They are our Transparency Task Force Ambassadors.





Larry Bates


The Wealth Game


Jackie Beard

Director of Manager Research Services EMEA

Morningstar Europe Ltd


JB Beckett

Consulting Chief Investment Officer/UK Lead

New Fund Order Consulting/ Association of Professional Fund Investors


Steve Conley

Chief Executive

Values Based Adviser


Stephen Davis

Associate Director and Senior Fellow

Harvard Law School Programs on Corporate Governance and Institutional Investors

Larry Elford


Investor Advocates

Richard Field


Institute for Financial Transparency

Ralph Frank

Co-Head DC


Dr. Nicholas Morris

Adjunct Professor

University of New South Wales


Ian Fryer

Head of Research

Chant West


Daniel Godfrey

Non-Executive Director

Big Issue Fund Management


Darby Hobbs

Co-Founder and Chairperson

Conscious Capitalism Boston Chapter


Catherine Howarth

Chief Executive



Con Keating

Head of Research

BrightonRock Group


George Kinder


Kinder Institute of Life Planning

David Knox

Senior Partner


Peter Kolthof

Partner and Head of the Netherlands

Avida International

Markus Krebsz

Interim Chief Risk Officer



Jon Lukomnik

Executive Director

IRCC Institute

USA – New York

Rory Maguire




Philip Meadowcroft

Independent Shareholder Activist



Matthew Murray


Centre for Business Ethics and Corporate Governance

Bernie Nelson

President – North America

Style Research

David Pitt-Watson


London Business School


Robin Powell


Ember Regis Group


Paul Secunda

Professor of Law and Director, Labor and Employment Law Program

Marquette University Law School


Kara Tan Bhala

President and Founder

Seven Pillars Institute for Global Finance and Ethics

USA – Kansas

Henry Tapper


Pension PlayPen


Anna Tilba

Lecturer in Startegy and Corporate Governance

Newcastle University Business School


Chris Tobe


Stable Value Consultants


Eric Veldpaus

Founder and Managing Director

Institutional Benchmarking Institute


USA – Boston Canada USA – Boston UK

USA – Boston Australia Netherlands

USA – Washington USA – Boston


The Transparency Times | | November 2018 | Edition #31

rce Ambassadors

mmunity, some go over and above. , are profoundly impactful for





Ian Peacock

Chief Client Officer

IG Group


Mark Polson

Founder and Principal

The Lang Cat


Lorelei Graye


Leodoran Financial


Adam Choppin

Investment Officer

FIS Group


Mike Barrett

Consulting Director

The Lang Cat


Julia Dreblow


SRI Services & Fund Eco Market


Helen Scott

Chief Executive Officer

Eris FX


Greg Rogers




Charlie Atkins




Thomas Wifffels

Senior Policy Advisor

The Federation of Dutch Pensions


Andrew Parry

Head of Sustainable Investing

Hermes Investment Management


James Daley

Managing Director

Fairer Finance


William Price

Global Pensions Consultant

The World Bank


David Stripp

Proposition Manager

David Stripp Limited


Jon Spain


Law for Life


David Rowe


David M. Rowe Risk Advisory


Francesco Briganti

Secretary General

Cross Border Benefits Alliance Europe


Helen Spoto


Sentry Financial Planning


John Spoto


Sentry Financial Planning


Ruston Smith


Tesco Pension Trustee Board


Mark Falcon

Founder and Director



Pascal Hogenboom

Associate Director

Strategia Worldwide


Paul Bates

Senior Counsel

Paul Bates Barrister


Andrew Mills

Founder and Director

Insight Financial Research


Sunil Chadda

Advisory Board Member

Association of Professional Fund Investors


Michael Erlanger

Founder and Managing Principal


Edition #31 | November 2018 | | The Transparency Times


The Transparency Task Force Teams The TTF Teams are our collective response to the extensive need for reform of the financial services sector, right around the world. We believe that those who areaware of issues should collaborate with others to put things right it’s in everyone’s interest to do so. Our Teams are all about understanding the potential power of working together to drive much needed change by harnessing the transformational power of transparency. Each of of our teams have a meeting/conference call quarterly. For further information please get in touch through:




Improving transparency and professionalism.

Foreign Exchange

Challenging the extensive opacity in the FX market.

Market Integrity

Championing ethical practices.

Costs and Charges

Helping investors access better value for money.


Focusing on issues jeopardising the success of auto enrolment.

Scams and Scandals

Raising awareness to help shut them down.

Global Transparency Index

Mutual learning to inform the Global Transparency Index.


Purpose, Impact Investing, Sustainability, CSR, ESG and SRI.


Progressive asset managers working together.

Financial Stability

Working to mitigate the risk of another Global Financial Crisis.


Promoting transparency in the Asia Pacific area.


Promoting transparency in Europe, the Middle East and Africa.

Team Americas

Promoting transparency in North and South America.


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The Transparency Task Force Advisory Board The Transparency Task Force has now grown to the point that an Advisory Board is now needed to formally shape our purpose and strategy moving forward.





John Howard Founding Chair of the Adviory Board


Consumer Insights


Lord Jamie Lindsay


UK Accreditation Servie


JB Beckett

Consulting Chief Investment Officer/UK Lead

New Fund Order Consulting Association of Professional Fund Investors


David Weeks




John Rosling




Margaret Snowdon

Non-Executive Director

The Pensions Regulator and Phoenix Group


Steve Kenzie

Ececutive Director

UN Global Impact UK


Baroness Ros Altmann

Pensions Expert

House of Lords


Matthew Simms


River and Mercantile Solutions


David Pitt-Watson

Visiting Fellow

Cambridge Judge Business School


Gavin Starks


D Gen


Susan Flood


ARK Campaign Group


Heather Buchanan

Policy Director

APPG on Fairer Business Banking


Julia Dreblow


SRI Services & Fund EcoMarket


Sue Lewis


Alistair Kellie

Managing Partner

Newgate Communications


Henry Tapper


Pension PlayPen


David Masters




Edition #31 | November 2018 | | The Transparency Times


The Director y of P r oo-rTyraonfsparen t c e r i D cy e Th O rrgeannciysations a p s n a r T Pro O rg a n i s a t i o n s

A business shouldn’t stand out because it’s ‘pro-transparency’, it should be the norm. If you lead a pro-transparency organisation, join those already advertising in our directory. The more firms are seen here, the more weight gathers behind our argument that transparency is a commercial virtue and not a threat. We’re happy to consider classifications beyond those shown here. Please contact for more information.


The Transparency Times | | November 2018 | Edition #31

ACADEMIC INSTITUTIONS Prof. Dr. Heinz-Dietrich Steinmeyer University of Muenster, Germany School of Law, Universitätsstrasse 14-16D-48143 e: Muenster phone: 49-251-8329744 m: 49-171-8384816 I am a professor for Social Security Law, Labour Law and Civil Law at the University of Muenster Law School. My special field is pensions – occupational/ supplementary pensions as well as public pensions. I am doing consulting work nationally and internationally including international organizations (EU etc.). I am the Chairman of the European Network for Research on Supplementary Pensions.

AUTO ENROLMENT Steve Conley, Managing Director, Workplace Pensions Direct e: w: t: 0113 457 4563 m: 07850 102070 Since 2015, Workplace Pensions Direct has made auto-enrolment simpler for small businesses, enabling employers to focus on running their companies without having to worry about pension law, and the cost of poor pension decisions. Workplace Pensions Direct offers an affordable, end-to-end, auto-enrolment solution that guarantees compliance with the law. With professional expertise, a century of payroll and pensions experience, and professional indemnity insurance – Workplace Pensions Direct has removed the worry and risk of autoenrolment for thousands of small businesses and their advisers.

Gavin Perera-Betts, Chief customer officer, NEST e: w: t: 020 3056 3719 NEST has been set up by the government especially for auto enrolment. We’re here to make sure that every employer has access to a workplace pension scheme that meets the requirements of the new pension rules. But we do more than just meet the regulatory minimum. NEST comes packed with the sort of high-quality features you need, whether you’re saving with us, using us for your workers or helping your employer clients.

COMMUNICATIONS CONSULTANTS Lesley Alexander, Managing Director, Ferrier Pearce e: w: t: 020 3772 5360 Transparency – clarity, straightforwardness, honesty. As communications consultants, we support transparency in financial products, especially long-term savings. This applies not just to charges, but to the way we describe the products and their benefits to consumers. We believe the language we use should be clear, unambiguous and direct, helping people to make the most out of their money.

DATA SERVICES Larry McLaughlin, CEO | GSAV Ltd e: w: t: +44 203 655 2182 m: +44 7771 978 118 US m: x+1 646 946 5272 GSAV Ltd is Reg Tech/Fin Tech company exclusively serving the Buy-Side and delivering pricing solutions in the Collateral Lending Market to benefit Beneficial Owners and enable Managers to meet their Fiduciary and Regulatory obligations. GSAVr is a specialist pricing, tracking and regulatory tool and provides an independent price for collateral lending transactions that defines rate and use in a manner that the Regulators feels meets the test of both price and use. GSAVr is the only solution available today that addresses the current challenges of any form of collateralized lending, full price discovery and full price transparency.

Edition #31 | November 2018 | | The Transparency Times


David Rich MIod, CEO | Accurate Data Services e: w: t: 01603 813366 m: 07919918623 David is Chief Executive of Accurate Data Services, a specialistdata quality and positive people tracing business that is focused on unclaimed assets in the financial service sectors. ADS traces lost members, clients and policy holders for a variety of organisations including Life and Pensions funds, Banks and Asset Managers. The goal is to help businesses reunite their customers / members with their assets and deliver positive consumer outcomes. David is an active campaigner for transparency and action around the large unclaimed assets issues present in the UK.

FIDUCIARY MANAGERS Ralph Frank, CEO DC (UK), Cardano e: w: t: +44 (0)20 3170 5910 Cardano was founded in 2000 and now has over 150 staff with backgrounds in the areas of risk management, investment management, research, actuarial and investment advisory. Cardano studies the causes and impact of risk and costs in order to significantly improve financial performance and resilience. We currently provide Investment Advisory or Fiduciary Management services to over 1.3m pension fund beneficiaries with assets totalling over £120bn.

FINANCIAL PLANNING Mike Stafford CFP, Director, Stafford Wealth Management e: w: t: 01992 501601 Stafford Wealth Management was formed in 1986 to provide bespoke lifestyle financial planning and investment services to private clients. It is one of a small number of elite firms in the UK that is accredited by the Chartered Institute for Securities and Investment. Stafford Wealth Management is authorised and regulated by the Financial Conduct Authority for investment business.

INVESTMENT CONSULTANTS Marcus Whitehead, Head of Investment Consulting, Partner, Barnett Waddingham e: w: t: 0333 11 11 222 Barnett Waddingham has grown to become the UK’s largest independent provider of actuarial, administration and consultancy services. Our total headcount is now over 850 – with offices in seven locations around the UK. The investment consulting practice provides bespoke, independent investment advice to over 360 pension schemes with assets from the millions to billions. We continue to provide the personal, quality, tailored approach that has made us successful and has led to high levels of client retention.

INVESTMENT GOVERNANCE CONSULTANTS James N Meenan, Principal | JNM Investment Governance e: w: t: +353 (0)1 687 1027 m: +353 (0)86 257 2646 JNM Investment Governance gives trustees independent coaching and support to develop strategies and techniques to stem the overwhelming resource handicap they face in discussions with investment professionals. JNM’s objective is to facilitate a constructive two way dialogue with attendant benefits for all parties.

Henrik Pedersen, Managing Partner & Co-Founder, Clerus LLP e: w: t: +44 20 3356 2845 m: +44 7767 656234 We partner with pension schemes and other asset owners to review and improve investment decisions, governance and value-for-money, through independent and informed investment analysis. As a result, investment outcomes can be improved without the need to change service providers or taking on more investment risk. We offer a free initial assessment, so why not try us out?


The Transparency Times | | November 2018 | Edition #31

INVESTMENT MANAGEMENT Robin O’Grady, Head of Business Development, Hawksmoor Investment Management e: w: t: 01392 410180 m: 07468 697900 Hawksmoor specialises in providing high quality discretionary investment management services for private clients including trusts, pension schemes and charities. We are a privately owned business with no ties to a bank or any other financial institution. Our experienced and well qualified team of investment professionals is focused solely on providing clients with the best service and consistently good performance.

NOT FOR PROFIT Dr. Kara Tan Bhala, President & founder, Seven Pillars Institute for Global Finance and Ethics e: w: t: +1(785)865-8824 (mobile) Seven Pillars Institute (SPI) for Global Finance and Ethics is an independent, nonprofit 501(c)(3), nonpartisan, organization whose mission is to highlight and analyze issues of moral philosophy in global financial markets with a view to enhancing ethical practice and policy.

PENSION ADMINISTRATION Margaret Snowdon OBE, Chairman, Pensions Administration Standards Association e: w: m: 07983 565955 The Pensions Administration Standards Association (PASA) is a not-for-profit organisation which acts as a focal point to engage with industry and government on pensions administration matters. It was created to provide an independent infrastructure to set, develop, and provide guidance on pensions administration standards. It is an independent accreditation body, assessing the achievement of good pension administration standards by schemes and providers.

RESEARCH Jackie Beard, Director of Manager Research Services EMEA e: w: Morningstar is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data and research insights on a wide range of investment offerings including managed investment products, publicly listed companies, private capital markets, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than USD $200 billion in assets under advisement and management as of 31 December 2016. The company has operations in 27 countries.


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Transparency Times #31 November 2018  

The Transparency Times is the official publication of the Transparency Task Force; the collaborative, campaigning community dedicated to dri...

Transparency Times #31 November 2018  

The Transparency Times is the official publication of the Transparency Task Force; the collaborative, campaigning community dedicated to dri...