Interactive Investor adds voting button on mobile app in efforts to improve DIY shareholders' engagement
- Investors who use ii's app will receive notifications through a voting mailbox
- They will also be informed about annual general meetings
Shareholders who invest through DIY investment platforms will now be able to take part in important company votes on their phones for the first time.
Investment platform Interactive Investor has added a voting button to its mobile app, in a bid to make it easier for Britain's army of small shareholders to vote on decisions that affect the companies they are invested in.
When you buy a share, you become a part owner of the company and therefore have the option of voting on decisions such as executive pay, dividends and board of director applications.
Interative Investor's users can now vote on companies they invest in through their mobile app
Richard Wilson, chief executive at Interactive Investor, says even though small investors have been able to vote online via the platform for some time, the vast majority do not, and voter engagement had dropped over the past year.
'So far this year, 93 per cent of UK votes on Interactive Investor have gone to waste,' he says. 'If we can move the dial by even a few percentage points, it will be impactful.'
Investors who use the group's app will receive notifications through a voting mailbox and will also be informed about annual general meetings.
The move is the latest attempt to improve shareholder engagement among DIY investors. Shareholder campaign groups have called on platforms to make voting easier.
Simon Rawson, of sustainable investment campaign group Share Action, says: 'Shareholders should be equipped with information and guidance so they can make real use of their rights.'
In the past, smaller shareholders held their shares with companies directly and attended AGMs in person. This typically made it easier for them to engage with the companies.
Many small shareholders now hold their portfolios through platforms such as AJ Bell, Hargreaves Lansdown and Interactive Investor. But these groups have no obligation to offer voting rights to customers.
Technological advances and the pandemic have radically changed the way in which shares are held and how companies engage with their shareholders.
The Government's Digitisation Taskforce said last week there should be no distinction in access to rights between shareholders who are directly registered and those who hold shares through intermediaries.
