In this paper, Gaved makes an important contribution to an under-researched area. The paper proposes that a Code of Disclosure for institutional investors should be adopted by the Financial Services Authority as part of its oversight of the financial services industry. A number of the proposals in the paper were supported by the Hampel Committee on Corporate Governance which reported in 1998.

Gaved states that institutional investors account for an estimated 80% of the value of the London stock market. Gaved provides data on the value of equity holdings in the UK. However, at the same time, there remains a huge discrepancy between the information disclosed by companies and that published by institutional investors about their ownership roles and responsibilities.

Gaved calls for fund managers to take a greater role in influencing standards of corporate governance and in enhancing accountability. Given the growing dominance of institutional investors much more information about their activities, and corporate governance policies, should be publicly disclosed.

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