UK-based workplace pension scheme Nest is to chair a new asset owner council established to enhance transparency, good governance and sustainability in the securities lending market. The new forum was created under the auspices of the Global Principles for Sustainable Securities Lending Community Interest Company (Global PSSL CIC), a multi-stakeholder body formed in 2018 to work with market participants to align securities lending practices with and sustainable finance. According to the Global PSSL CIC, the new council structure will operate under an ‘Active Briefing Culture’ to increase transparency, clarity and efficiency throughout the securities lending value chain. Other founding members of the council include PGGM and the Merseyside Pension Fund. “Nest is looking forward to chairing GPSSL’s new asset owners council,” said Diandra Soobiah, Director of Responsible Investment at Nest. “This initiative represents a significant step towards integrating sustainability, transparency and accountability into the securities lending markets in the interests of asset owners. We hope the council will serve as an influential voice in Global PSSL, and wider value chain, to improve the functioning of the market globally.” Founder Radek Stech said Global PSSL’s stakeholders were committed to increasing transparency and stakeholders’ understanding of the whole securities lending value chain. “I am glad that our 3P Transparency tool and new Active Briefing Culture serve as governance mechanisms on the journey to achieving that goal. This aims to stem the rise in legal and regulatory cases relating to securities lending in recent years.”
