The Investment Management Association has commented on the Kay Review, saying asset managers do not contribute to short-termism.
The Kay Review said that a culture of 'short-termism' and lack of trust was undermining the UK equity markets.
It urged trust and confidence to be restored by applying fiduciary standards to the investment chain and that incentives were better-aligned to the interest of clients.
Liz Murrall, IMA director of corporate governance and reporting, said: "The report's main conclusion is that short-termism is a problem in the UK equity markets. It recognises the distinction between investors and traders, but this is not taken into account in the analysis of short-termism. The IMA does not consider asset managers contribute to short-termism. "In the interest of improving trust one of the principles in the report is that all participants in the investment chain should observe fiduciary standards.

"This is welcome as asset managers already have the best defined, legal obligations of care towards their clients and it is right that these are extended to others."
The Confederation of British Industry also responded to the proposals, agreeing with Prof. Kay's comments on short-termism.
Matthew Fell, CBI director for competitive markets, said: "This report is right to focus on tackling the culture of short-termism in the UK which some listed companies get caught up in.
"This culture change can be best achieved by high-quality engagement between boards and investors, which needs to move beyond corporate box-ticking to focus on company strategy."