The IIC, shareholder primacy & banks

I might be the only person in the UK, outside the membership of the IIC, who keeps an eye on the website of the Institutional Investor Committee website. And it is worth keeping on your radar. I just spotted that the IIC has put a letter in to BIS warning about the proposed shift away from shareholder primacy in relation to the banks. Not sure if this has had pick up anywhere?    

Anyway, here's an extract:

The proposal to create a primary duty to promote financial stability over and above other interests, including shareholders is, we believe, mis-directed, sets a worrying precedent and could impact upon the investibility of UK banks. Directors’ duties should be consistent for all companies. We do not believe that there is divergence of interests between institutional shareholders and directors, including directors of banks - both wish to see the company succeed. Given that it is shareholders’ capital which is at risk it is very much in their interest that any firm remains financially secure.

For the back ground to this see here and here.