Stewardship and institutional investor engagement

Global capital markets have undergone profound changes in the last three decades, with large institutional investors emerging as central actors through significant and increasingly cross-border ownership. Their scale and influence may contribute to market efficiency, integrity and corporate accountability, but also raise policy challenges regarding transparency and alignment with client interests. This policy paper provides guidance to policymakers and regulators on how to assess the legal, regulatory and institutional frameworks to support effective stewardship. Focusing on fiduciary duties, disclosure and the role of market service providers, the paper emphasises proportionality, transparency and accountability to foster high-quality stewardship and reinforce trust in capital markets.