Interactive Investor introduces new voting feature for shareholders on mobile app

Shareholders who invest through DIY investment platforms can now participate in important company votes directly from their smartphones.

Interactive Investor, an investment platform, has introduced a voting button on its mobile app. The aim is to make it easier for the large number of small shareholders in the UK to vote on decisions that impact the companies they have invested in.

When an individual purchases a share, they become a partial owner of the company and therefore have the right to vote on crucial matters like executive pay, dividends, and board of director applications.

Richard Wilson, the CEO of Interactive Investor, acknowledges that while small investors have had the option to vote online through the platform for some time, the majority do not exercise this right, leading to a decline in voter engagement over the past year.

‘So far this year, 93% of UK votes on Interactive Investor have been wasted,’ he says. ‘Even a small increase in voter participation will have a significant impact.’

Investors who use the platform’s app will receive voting notifications through a dedicated mailbox and will also be informed about upcoming annual general meetings.

This initiative is the latest effort to enhance shareholder engagement among DIY investors. Shareholder campaign groups have been urging platforms to simplify the voting process.

Simon Rawson, from the sustainable investment campaign group Share Action, asserts that ‘shareholders should be provided with information and guidance to effectively exercise their rights.’

Previously, smaller shareholders held their shares directly with companies and attended annual general meetings in person, making it easier for them to actively participate. However, many small shareholders now hold their portfolios through platforms like AJ Bell, Hargreaves Lansdown, and Interactive Investor, which are not obligated to offer voting rights to customers.

Technological advancements and the impact of the pandemic have drastically transformed the way shares are held and how companies engage with their shareholders.

Last week, the Government’s Digitisation Taskforce stated that there should be no distinction in access to rights between directly registered shareholders and those who hold shares through intermediaries.