Regulators Begin to Tip their Hand with New Concerns for Registered Investment Advisers
By: Kevin McManus
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.
Egan-Jones Proxy is here to help. Contact us today at +1-844-495-5244 x1102, email@example.com or at https://ejproxy.com/contact/.
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.
+1-844-495-5244 x 1102 firstname.lastname@example.org
This content is produced by individuals who are not part of the credit ratings team and do not have responsibilities for determining credit ratings or developing/approving methodologies, models or procedures that are used to determine credit ratings. The views expressed herein might not parallel the views of the credit ratings team. The information in this report is based on current publicly available information that Egan-Jones Ratings Company (“EJR”) considers reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates and forecasts contained herein are as of the date hereof and are subject to change without prior notification. Any credit ratings issued by EJR represent EJR’s current opinion of the credit risk of the instrument or entity rated. Any such credit ratings do not address other factors or risks such as market volatility, market risk or liquidity risk. Prospective clients should refer to EJR’s published statements as to the meaning of different credit ratings assigned by EJR. Credit ratings provided by EJR are solely intended to be used by institutional investors. EJR does not assess or address the suitability of any investment for any client or any other person or the marketability of any security or instrument. Any credit rating issued by EJR is not, and should not be construed as, a recommendation to buy, sell or hold any security or instrument or undertake any investment strategy and EJR does not act a fiduciary for any person. EJR may raise, lower, suspend, withdraw or otherwise modify a credit rating at any time in its sole discretion. EJR IS NOT LICENSED AS A NATIONALLY-RECOGNIZED STATISTICAL RATING ORGANIZATION (“NRSRO”) IN RESPECT OF “ASSET-BACKED SECURITIES”, “GOVERNMENT SECURITIES”, “MUNICIPAL SECURITIES” OR SECURITIES ISSED BY A FOREIGN GOVERNMENT (ALL AS DEFINED IN THE FEDERAL SECURITIES LAWS AND, COLLECTIVELY, THE “EXCLUDED SECURITIES CATEGORIES”) AND ANY RATING ISSUED BY EJR IN RESPECT OF ANY SECURITIES FALLING WITHIN AN EXCLUDED SECURITIES CATEGORY IS NOT ISSUED BY EJR IN ITS CAPACITY AS AN NRSRO. EJR is not responsible for the content or operation of third party websites accessed through hypertext or other computer links, cannot guarantee the accuracy of any information provided on an external website and shall have no liability to any person or entity for the use of, or the accuracy, legality or content of, such third party websites. The views attributed to any third party, including any article accessed via computer links, do not necessarily reflect those of, and are not an official view or endorsement of, EJR. This publication may not be reproduced, retransmitted or distributed in any form without the prior written consent of EJR. © 2021, Egan-Jones Ratings Company. All rights reserved.