BPPG launches a consultation on the Best Practice Principles for Shareholder Voting Research.

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20 Oct, 2017

The Best Practice Principles Group (BPPG) has launched a consultation on the Best Practice Principles for Shareholder Voting Research (the Principles). The Principles, first introduced in 2014 with the aim of promoting ‘a greater understanding of the role of shareholder voting research providers and provide more transparency about their activities’, are currently voluntary standard for proxy voting advisors.

The consultation, part of a wider review looking at the impact and implementation of the Principles, is seeking views from investors and companies on whether the Principles have been effective in ensuring the integrity and efficiency of the services provided by shareholder voting analysts and advisors.

The Steering Committee overseeing the consultation is currently considering whether changes are needed to the Principles themselves or to how they are reporting on and monitored, as well as what actions are needed to ensure the Principles are fully compatible with the mandatory requirements for proxy advisors operating in the European Union that are contained in the revised EU Shareholder Rights Directive, which takes effect in 2019.

The consultation is open until 15 December 2017 and includes 42 questions, including questions on: the development of the voting policies; research methodologies; management of conflict of interest; communication between proxy advisors and companies; the handling of feedback and complaints and; opportunity for companies to review a draft report before finalisation.

Further details on the consultation and the online survey can be found on the BPG Group website here.

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