This policy paper considers potential approaches for how policymakers and regulators could assess the legal, regulatory and institutional frameworks that enable institutional investors to discharge their stewardship responsibilities, with a view to supporting economic efficiency. The paper is structured around five areas: (i) ensuring the basis for an effective stewardship framework; (ii) the fiduciary duties of institutional investors; (iii) exercising rights and engagement; (iv) stewardship policies of institutional investors; and (v) market service providers. Emphasising proportionality, transparency and the rule of law, the policy considerations aim to promote consistent and effective stewardship practices that strengthen trust, accountability and integrity in global capital markets. The paper builds on the research and analysis in the OECD reports Institutional Investor Engagement and Stewardship and The Role of Capital Market Service Providers in Corporate Governance (OECD, 2025[1]; 2026[2]).
The paper was developed by the Capital Markets and Financial Institutions Division of the OECD Directorate for Financial and Enterprise Affairs. It was prepared by Adriana De La Cruz and Hitesh Tank under the supervision of Caio de Oliveira, Head of the Sustainable Finance and Corporate Governance Team, and Serdar Çelik, Head of Division. Sebastian Abudoj, Daniel Blume, Fianna Jurdant, Tiziana Londero, Alejandra Medina, Sara Sultan, Yun Tang and Devran Zeyrek, all from the Division, provided comments.
Inputs were provided by delegates to the OECD Committee on Financial Markets and its Working Party on Sustainable Finance, including during a Working Party roundtable on the growing role of institutional investors in global capital markets and their engagement with investee companies. The following external experts participated: Francesco Beccali (Terna), Christophe Bories (French Treasury), Sarah Court (Australian Securities and Investments Commission), Astrid Ludin (Financial Sector Conduct Authority South Africa), and Jenn-Hui Tan (Fidelity International and International Corporate Governance Network Board Member). Inputs were also provided by delegates to the OECD Corporate Governance Committee.