Regulators are Concerned for Registered Investment Advisers
Wednesday, September 15, 2021
As administrations have changed, so has their outlook on proxy voting and the associated rules and regulations. Many of the proposed rules from last year are now suspended and may never be implemented – at least in their current form.
On the other hand, issues like ESG and the actual voting of proxies have become much more of a front-burner issue. Current regulatory inquiries seem to be primarily focused on whether an investment is sold as an ESG investment, and how that is reflected when it comes to proxy voting (among other things).
Another concern is, as always, the actual voting of proxies, specifically when voting is delegated to clients: is there a mechanism for them to actually vote.
While it is possible that four years from now the pendulum will swing back just a bit, many of these issues reflect long-term trends that are not likely to go away. A prime example being the new Nasdaq Board diversity rule.
Of course, where we end up years in the future is secondary to those of us who need to comply with today’s regulations. For that, Egan-Jones Proxy has a variety of voting guidelines and services, both for ESG and non-ESG investors.
Links of the Week
For further details on new regulatory issues please see the SEC Risk Alert below:
See: https://www.sec.gov/files/esg-risk-alert.pdf - section II, “Portfolio Management”
See below for a link to the Nasdaq diversity rule:
Egan-Jones is Here to Help
Do you currently have an ESG investment option? Are you planning to add one in the near future?
If so, you need an ESG voting policy and Egan-Jones Proxy Services is here to help. With multiple guidelines that can meet your ESG voting needs at our always affordable prices we can solve your ESG voting needs quickly.
Of course we also have a number of non-ESG guidelines to meet your needs too.
How we can help
Prospective clients have often asked how we can help them and what areas we consider are particularly
strong. In response, below are the areas worth reviewing:
Private Placement Ratings – assisting investors access private markets via ratings on private placements.
Subscription Ratings – we have had a strong track record in providing early, accurate independent credit
Climate Change / ESG Scores – an assessment of entities’ current and prospective scores.
Independent Proxy Research and Recommendation/Voting – assisting fiduciaries in fulfilling their voting and record-keeping obligations.