NAPF boss merger hint

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The 'provisional wing' of pensions

Two of the most powerful voices in corporate governance are to explore a merger.

Talks are to begin on a partnership between the relevant divisions of the National Association of Pension Funds and the Association of British Insurers. Corporate governance is a hot topic at present, due to its guidelines on directors' pay and the independence of directors and auditors.

The NAPF advises its members how to vote on the issues, although the ABI doesn't go this far. But both negotiate with listed companies on how to improve corporate governance, on behalf of their members.

The new chief executive of the NAPF, Christine Farnish, starts tomorrow, after four years as the highly respected head of the consumer division at the Financial Services Authority, the City's regulator. She told The Independent on Sunday that she is to meet Mary Francis, the director-general of the ABI.

"[Corporate governance] is an area where we and the ABI can form a very effective partnership," she said. "I haven't started the job yet, but on my list is a discussion with Mary Francis on the issue."

A spokesperson for NAPF stressed that a merger in corporate governance was "one of a number of options".

"The NAPF and the ABI already work very closely on a wide range of issues," said an ABI spokesperson.