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23 - Stewardship in Kenya

Just a Code or Something More?

from Part II - Jurisdictions

Published online by Cambridge University Press:  28 April 2022

Dionysia Katelouzou
Affiliation:
King's College London
Dan W. Puchniak
Affiliation:
National University of Singapore
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Summary

This chapter considers the South African shareholder stewardship code, the Code for Responsible Investing in South Africa (‘CRISA’). CRISA sets a strong agenda for the promotion of sustainability considerations in the investment analysis and investment decisions of institutional shareholders. The principles of CRISA are mostly accepted by both asset owners and asset managers side. However, disclosure on compliance with CRISA principles has been weak. Adoption of CRISA is supported by the South African corporate governance code, the King IV Report on Corporate Governance for South Africa 2016 (King IV). Principle 17 of King IV expects that the governing bodies of institutional investors will ensure responsible investment to promote good governance and value creation. The responsible investment framework for institutional investors is further supported by hard law in the form of regulation 28 of the Pension Funds Act 25 of 1956, which promotes the responsible investing of pension fund assets. The South African Financial Sector Conduct Authority has published a guidance notice to further guide boards in ensuring the sustainability of investments and assets. The chapter ends with recommendations for the improvement of CRISA and argues that the supervision of stewardship could improve if overseen by the Financial Sector Conduct Authority.

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Publisher: Cambridge University Press
Print publication year: 2022

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