Shareholder Voting Research Best Practice Principles
Manifest has been actively involved in the development of the Best Practice Principles for Shareholder Voting Research since February 2013.
The Best Practice Principles Group (BPPG) was formed to address a recommendation from the European Securities & Markets Authority (ESMA) that the shareholder voting research industry should seek to improve understanding and transparency of the role of firms which provide services to institutional investors.
ESMA’s Final Report and Feedback Statement on the Consultation Regarding the Role of the Proxy Advisory Industry (“ESMA Final Report”), published 19 February 2013, ESMA concluded that:
“(I)t has not been provided with clear evidence of market failure in relation to how proxy advisors interact with investors and issuers. On this basis, ESMA currently considers that the introduction of binding measures would not be justified. However, based on its analysis and the inputs from market participants, ESMA considers that there are several areas, in particular relating to transparency and disclosure, where a coordinated effort of the proxy advisory industry would foster greater understanding and assurance among other stakeholders in terms of what these can rightfully expect from proxy advisors. Such understanding and assurance will help to keep attention focused where it belongs, namely on how investors and issuers can, from their respective roles foster effective stewardship and robust corporate governance, and ensure efficient markets. Consequently, ESMA considers that the appropriate approach to be taken at this point in time is to encourage the proxy advisory industry to develop its own Code of Conduct.”
The resulting Best Practice Principles were put to a public consultation in December 2013 and the final the Principles were published in March 2014 HERE >>
Manifest’s Best Practice Principles statement can be found HERE (English)>> or HERE (Spanish) >>
Last Updated: 15 April 2014