Proxy Commentary
Regulators are Concerned for Registered Investment Advisers
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:
https://listingcenter.nasdaq.com/assets/Board%20Diversity%20Disclosure%20Five%20Things.pdf
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Since 2002, Egan-Jones has been an independent provider of proxy services, including research reports, vote recommendations, and voting services. Egan-Jones is one of three full-service proxy service providers for institutional investors including, insurance companies, registered investment advisors, pension funds, Taft-Hartley funds, family offices and more.
Egan-Jones covers all client equity holdings, and its recommendations are based on proxy voting guidelines chosen by the client. Additionally we offer the ability to design fully custom guidelines.
Find out more information on our website.
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