IMA opposes legislation in call for greater boardroom diversity

The Investment Management Association (IMA), the trade body for the asset management industry, has called for diversity in company boardrooms, but says it opposes legislation, such as quotas, which would boost diversity.

In its written submission to the House of Lords, the IMA said that investors want an effective board that is the best fit for a company. It said quotas to get more women onto boards, for example, would be a quick fix but would not necessarily lead to sustainable change.

IMA director of corporate governance and reporting, Liz Murrall, said: “Diversity is needed and that is precisely why we oppose legislation. Different companies need different boards; you cannot prescribe the best fit. Boards need a mix of skills, experience, nationalities and gender. Voluntary measures are working and we are confident that Lord Davies’ target of 25% female representation on FTSE 100 boards by 2015 will be met as a result of the steps now being taken”.

Different companies need different boards; you cannot prescribe the best fit. Boards need a mix of skills, experience, nationalities and gender. Voluntary measures are working and we are confident that Lord Davies’ target of 25% female representation on FTSE 100 boards by 2015 will be met as a result of the steps now being taken”.

From October 1st, listed companies will have to report annually on their board and the progress made towards diversity. The IMA said that the European Commission should reassess the success of a voluntary approach in three to five years’ time, before considering the use of quotas.