Regulation Archive

Jan 05, 2022
Can markets predict Supreme Court rulings for corporate cases?
What happens when a company’s case goes to the Supreme Court? How does it influence stock and options prices? And do investors price their anticipation of the outcome into these markets? While cases surrounding public companies often do not make it to the Supreme Court, it is well understood that those that do must be important, such as Apple’s antitrust case (Apple vs Pepper), eBay vs MercExchange, Mobil Oil vs Federal Power Commission, Walmart vs Dukes and Mic...
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Nov 29, 2021
‘UK stock market may outperform US in coming decades,’ says Premier Miton’s equities head
The UK’s Wholesale Market Review and the EU’s consultation on Mifid II’s Regulatory Technical Standards are both under way following Brexit. What do IROs need to know about the upcoming changes? Generally, market liquidity has declined over the last 10 years, and there is a danger that the demerger of the UK/EU liquidity pool will make things worse, in a kind of Balkanization process. Generally, we anticipate that IR staff will start to repor...
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Nov 22, 2021
Consistent, sustainable corporate investments: Anticipating regulation and reducing reputational risks
The European Commission’s (EC) requirements for sustainability reporting already affect a significant portion of investments made by companies. Certain areas, however – such as strategic liquidity management, cover-funds from direct employer pension commitments and lump-sum support funds for corporate pension plans – have been omitted from regulation so far. This could change if the legislator wants to achieve transparency without contradiction and ambiguity. ...
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Nov 09, 2021
SEC reveals new guidance on shareholder proposal exclusions
The SEC’s division of corporation finance has updated its guidance on the process whereby companies seek permission to exclude shareholder proposals, potentially opening the door for more ESG-related measures to end up on proxy statements in 2022 and beyond. The division on November 3 issued a notice that it is rescinding three staff legal bulletins – ...
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Oct 12, 2021
Directors need to be held accountable for corporate purpose commitments, report says
Board directors should be held accountable for determining and implementing the purposes of their companies, according to a British Academy report. Corporate purpose has been an evolving topic in recent years. In August 2019, the Business Roundtable released its Statement on Corporate Purpose, which outlined a modern standard for corporate responsibility. Shortly after that, in 2020, the World Economic Forum launched a new Davos Manifesto with the objective o...
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Sep 30, 2021
Profiling the Corporate Sustainability Reporting Directive
If the EU is to meet the challenging goals it has set itself on sustainability, companies need to play their part. The trade bloc’s policy aims – collectively referred to as the European Green Deal – include becoming the first world's net-zero continent and shifting to a ‘circular economy’ where economic growth no longer relies on the Earth's natural resources. To help meet these objectives, the EU Commission has proposed the Corporate Sustainability Repor...
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Sep 23, 2021
CII seeks better ESG disclosures under accounting rules
The Council of Institutional Investors (CII) has urged FASB to make ESG-related disclosures one of its top priorities amid growing pressure for companies to enhance reporting around those issues. Specifically, CII believes FASB could improve ESG-related reporting concerning human capital management, climate change and income taxes. CII was writing in response to FASB’s request for comment on its agenda.  CII general counsel Jeffrey Mahoney writes that the ...
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Sep 14, 2021
Huge investor coalition calls on governments to accelerate climate action
A huge investor coalition has urged national governments to accelerate policy changes that will support investment in climate change solutions. A group of 587 investment firms with a collective $46 tn in assets under management has called on governments to take a range of actions, from strengthening emissions targets to mandating climate reporting and ending fossil fuel subsidies. Signatories to the ...
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