The Rise of Passive Investing: Corporate Governance, Systemic Risk and Index Construction

On September 27, 2019, PIFS hosted a special roundtable event in Cambridge, Massachusetts entitled “The Rise of Passive Investing: Corporate Governance, Systemic Risk and Index Construction”. At the event senior regulators, senior industry representatives, and distinguished academics from the European Union, the United Kingdom, and the United States discussed critical issues associated with the rise of passive investing.

Roundtable Session Topics:

  • What is the impact of the rise of passive investing on corporate governance?
  • Liquidity and systemic risk – Do index funds create price distortions for public companies? Is there herding that could pose systemic risk?
  • What is the impact of index construction on capital markets?

Participants included, among others,

  • Jay Clayton, Chairman, U.S. Securities and Exchange Commission
  • Gabriela Figueiredo Dias, Chair, Investment Management Standing Committee, European Securities and Markets Authority
  • Martin Moloney, Director General, Jersey Financial Services Commission
  • Rob Taylor, Head of Investment Management Supervision, U.K. Financial Conduct Authority
Roundtable Event Materials
The Rise of Passive Investing: Corporate Governance, Systemic Risk and Index Construction Agenda
The Rise of Passive Investing- Corporate Governance, Systemic Risk and Index Construction Attendee List