Fiduciary Duty under the Microscope: Stewardship and the spectrum of Pension Fund Engagement

Tilba, Anna; Reisberg, Arad

Abstract

UK pension fund trustees’ interpretations of their fiduciary duties may shape pension fund approaches to corporate stewardship and engagement envisioned by the UK Stewardship Code. Data from interviews with pension fund trustees, executives, investment intermediaries and pensions experts reveals interpretive pluralism of the concept of fiduciary duty in the area of pension funds. This article develops a model identifying the spectrum of pension fund engagement, linking interpretations of fiduciary duty to intensity and methods of engagement in practice. The findings help disambiguate the concept of ‘Fiduciary Duty’, highlighting the practical challenges of Stewardship Code application. These insights are relevant to the ongoing revisions of the Stewardship Code and policy clarifications of the nature of fiduciary duty by the UK Financial Conduct Authority. The paper encourages trustees, regulators and others to consider what role pension fund trustees should have in stewardship, which may not be directly relevant to their fiduciary duties as trustees.

Citation

Tilba, A., & Reisberg, A. (2019). Fiduciary Duty under the Microscope: Stewardship and the spectrum of Pension Fund Engagement. Modern Law Review, 82(3), 456--487. https://doi.org/10.1111/1468-2230.12413

• Journal Article Type: Article
• Acceptance Date: Jan 8, 2019
• Online Publication Date: Feb 25, 2019
• Publication Date: May 30, 2019
• Deposit Date: Jan 18, 2019
• Publicly Available Date: Feb 25, 2020
• Journal: Modern Law Review
• Print ISSN: 0026-7961
• Electronic ISSN: 1468-2230
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 82
• Issue: 3
• Pages: 456--487
• DOI: https://doi.org/10.1111/1468-2230.12413
• Public URL: https://durham-repository.worktribe.com/output/1339455