We welcome the FCA’s announcement on the latest steps in implementing the Asset Management Market Study. At Hermes we have long held the belief that it is our duty to always act in the clients and their beneficiaries’ interests, and to invest in way that is responsible. Moreover, we have long advocated that good governance is a cornerstone of active investing, and therefore welcome the rules on better governance of funds. Our Responsibility team is accountable for developing and integrating responsibility across the business alongside the Investment Office, which is answerable to clients for the investment teams’ consistent delivery of responsible, risk-adjusted performance and adherence to the processes which earned them their ‘kitemarks’. As an active manager with high active share, we share the view that true active management is rare, but that transparency is an integral part of the reporting process. However, one area where we would welcome more dialogue, is around stewardship. It is our view that stewardship is a vital element of fund management, and should be seen as the ultimate goal of the industry in order to contribute to a more sustainable form of capitalism over the long-term. We strongly believe that stewardship generates value add over the long-term for all stakeholders, helping people invest better, retire better and create a better society for all.