US financial watchdog warns that investment firms using proxy advisers must “ensure the use of advice is consistent with their fiduciary duties”.
For those who campaigned for tighter regulation, it will be viewed as a victory. The top financial watchdog in the US has issued a document that will up the pressure on proxy advisers to disclose more information about how they undertake their work.
The Securities and Exchange Commission (SEC) has issued the guidance to investment managers after a debate that has raged in US over demands for increased oversight of proxies.
The wrangle has focused on the huge influence proxies now have over corporate governance, the potential conflicts of interest that affect their work, the lack of any rules to govern how they conduct themselves. One an
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