Link’s appointment of former Blackrock heavyweight Tony Stenning (pictured) to oversee its board has been described as “a step in the right direction” for its authorised corporate director business as it seeks to put the Neil Woodford saga behind it.
Link Fund Solutions confirmed on Monday that Stenning, Blackrock’s former UK retail boss, would become chairman of the board and lead Link’s risk and value assessment committees.
In addition, Stenning, who exited Blackrock in 2016, becomes Link’s second independent non-executive director. He joins existing non-executive director Tony Stewart who has been on the board since 15 November 2017.
Following Stenning’s appointment Link will have a total of six board members.
Link needs governance clout in light of Woodford
Though JB Beckett, former fund selector and independent funds board director, said he has “much respect” for Stenning whom he touted as an “excellent distribution lead for Blackrock’s UK business” he queried whether a more governance-oriented or an “outsider” would have played better to the court of public opinion.
“Recruiting iNeds is not about an ex-managing director or ex-VP career choice; it’s not a brand or title showcase, the role demands a particular set of skills alongside a customer focus and a thorough understanding of the functions and dysfunctions of our industry,” he said.
But Fund Boards Council chief executive Shiv Taneja said Stenning’s appointment “a step in the right direction” for Link as it tries to draw a line in the sand under the Woodford saga.
“We need more people with the sort of experience that Tony brings to bear to take on some of these roles in areas of governance which historically people like him may not have considered.”
Having an independent chair is uncommon
The fact that Stenning will be serving as an independent chair is also an interesting choice, said Taneja.
Having an independent chair is not common, he said, as fund boards still tend to view the role of chair as bridging the gap between the executive side of the business and the independent directors, which in many instances are new appointments as required by the Financial Conduct Authority’s asset management market study.
“Do we want to see more independent chairs in the future? Yes, we do, but it shouldn’t be one size fits all.”
Independent chairs and directors are a step removed from the business and so do not have full access into the inner workings of a company as executive board members do. What you need is an independent chair who is not afraid to challenge management, he said.
‘A pivotal time for the industry’
Stenning said he was joining the board of Link “at a pivotal time for the industry”.
“The need to strengthen trust with end-investors and demonstrate the inherent fiduciary responsibility within investment management has arguably never been greater,” he said. “I look forward to working with the LFS board to help them develop their strategy and governance structure, as well as continuing to develop a culture where end-investors’ interests are prioritised.”
Stenning has nearly three decades of investment industry experience, including sixteen years at BlackRock. He was recently appointed as chair of The Investing and Saving Alliance (TISA), whose primary focus is on improving the financial well-being of consumers.
