Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

View from City Road: Widows shows less than good sense

Monday 16 May 1994 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Scottish life companies are a conservative, careful lot and quite right, too. That's how they won their much- deserved reputation for prudence and reliability. Even so, Scottish Widows' insistence that all companies visited by their fund managers formally declare they have not given out any price- sensitive information, is over the top.

Far too many companies already view meetings with their institutional shareholders as the equivalent of an end-of-term report with the headmaster, instead of the opportunity for constructive discussion of the business with its owners. The excessively legalistic approach adopted by Scottish Widows can only add to that feeling, and risk souring relations with other fund managers.

It is also hard to see what Scottish Widows gains. The courts are hardly likely to let a fund manager off a charge of dealing on inside information simply because he can prove he asked the company not to give him any. The presence of a colleague as a witness to what was said at the meeting - the method used, with apparent success, by most other firms - would surely be a far better defence.

The Criminal Justice Act and tighter Stock Exchange guidelines have undoubtedly forced companies, and institutions, to think much more about their communications than in the old, clubbish days. Living with these regulations is hard enough without the participants making it worse.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in