Engagement policy


Under new rules introduced to implement the updated Shareholder Rights Directive, RBC Europe Limited (RBCEL), when providing Wealth Management discretionary services, is required to set out a detailed engagement policy or explain why it has chosen not to produce such a policy. It is RBCEL’s view that an engagement policy is more appropriate to firms providing discretionary services to large institutional clients such as pension funds or investment funds rather than discretionary services provided to retail clients.

Whilst RBCEL will look to the engagement policies of its sub advisors and the underlying funds when making discretionary investment decisions on behalf of clients, its ability to engage with companies is limited as generally the proportion of shares held in a company is lower than those held by certain other institutions. Therefore, RBCEL does not believe it is currently appropriate to establish a formal engagement policy. If you have any questions regarding the above, please do not hesitate to contact your Relationship Manager.