Governance and policy

External Advisory Committees

Why do we have committees?

An independent committee structure reflects FTSE Russell's dedication and commitment to the highest standards of index governance.

FTSE Russell's external advisory committees help FTSE Russell to ensure that its indices reflect the underlying market and index methodologies (a set of strict rules by which all FTSE Russell indices are governed) evolve appropriately.

This governance heritage stretches back to 1984, when independent practitioner committees were established to assist with the management of the FTSE 100 Index. While the approach to membership, the role and the dynamics of the committees have since changed, the external advisory committees remain an important component of the FTSE Russell governance framework.

What is the purpose of the committees?

A system of committees supports FTSE Russell in maintaining, managing and calculating FTSE Russell’s indices. Partner committees are run in the same way, in cooperation with our index partners.

The committee members are also invited to provide guidance on how FTSE Russell’s indices meet investors’ needs, advising on the design and creation of new indices and changes to existing index policies.

The discussions and feedback from the advisory committees are a data set on which the FTSE Russell Index Governance Board draws when making decisions and index determinations. Certain committees also consider index data sources and classifications at the country, theme, sector and constituent level.

Who are the committee members and how is committee membership determined?

FTSE Russell’s external advisory committees are made up of leading investment market professionals from around the world.

Individuals are drawn from organisations that make use of FTSE Russell indices, both buy and sell side. Firms typically include (but are not limited to) asset owners, asset managers and investment consultants. Some committees may also comprise members who hail from other parts of the financial services ecosystem, and include representatives from the broking, custodian, securities lending, digital asset and other communities.

Members of the Policy Advisory Board typically operate at the managing director level or above, providing guidance and views at a strategic level on index methodology-related matters.

While members may be employees of FTSE Russell clients, they serve in a personal capacity. Membership is offered to individuals who can contribute to the maintenance of the quality of FTSE Russell’s indices and have technical knowledge of the provision of certain benchmarks.

Committee members also offer a depth of knowledge, unique viewpoints and share the joint objective of seeking to preserve the integrity of the indices and transparent index review process. It is for this reason that FTSE Russell will seek to retain committee members even if they move firms but will also ask committee members to step back if they can no longer demonstrate a practical understanding and experience in the use of FTSE Russell indices.

How can index users participate?

Users’ points of view can be expressed directly to FTSE Russell and where appropriate will be referred on to the relevant committees. 

The committees and their members are served by the FTSE Russell Committee Secretariat. The team can be contacted on with any viewpoints or information that index users would like to share with the committees.

Index users and relevant stakeholders may also suggest colleagues for a position on one of FTSE Russell's committees. The Terms of Reference for each of the FTSE Russell committees can be found below. FTSE Russell reserves the right to decline any membership recommendations or proposals in line with these Terms of Reference, the membership approach outlined above, its overarching governance framework and if there are no membership vacancies.

Market consultations

FTSE Russell regularly consults the market on changes to its index methodologies.  The external advisory committees are often involved in the origin and design of FTSE Russell's market consultations.

All consultations are run in line with the Policy for Benchmark Methodology Changes. Details of past and current consultations can be found here Market Consultations.