On 6 February 2011, the FSA's Guidance on concert party arrangements for the control of UK financial institutions (the Guidance) came into force. This concluded a long period of consultation by the FSA, during which there has been continued focus in the UK on the terms of shareholder engagement following the financial crisis.

The Guidance appears to extend the concept of "acting in concert" to areas where shareholders agree to vote together on specific issues. It remains to be seen how the FSA applies the Guidance in practice and whether the validity of its approach is challenged.

The Guidance is significant because of its role in balancing engagement between shareholders in financial institutions against the need to ensure that aggregate control over those institutions remains subject to regulatory approval. Our briefing examines how the Guidance has addressed this balance.

Click here to view our briefing.

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