Regulation Archive

Jun 16, 2021
As companies disclose more ESG data, activists have an opportunity
The growth of corporate disclosure on ESG issues will offer new opportunities to activist investors as they search for evidence of underperformance, according to a recently released white paper. Activists are increasingly using ESG issues as a focus area in their engagement with issuers, but it can be hard to build a thesis when there is a lack of data showing how companies stack up against peers. ESG disclosure, already at record levels, is set to increase f...
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May 14, 2021
Investor coalition calls for tougher methane regulation for oil and gas industry
A large coalition of investors has called on the US administration to strengthen methane regulation and warned that a lack of action could hit the value of oil and gas companies.  The group of 147 firms, co-ordinated by Ceres and the Interfaith Center on Corporate Responsibility (ICCR), welcomes action being taken by the US government but urges further measures to help meet the climate goals of the Paris Agreement.  Tackling methane emissions is viewed as k...
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Apr 23, 2021
EU to more than quadruple number of companies covered by sustainable reporting rules
The European Commission (EC) has proposed new sustainable reporting rules that would greatly expand the number of companies forced to disclose information on ESG issues.  European lawmakers said this week they plan to extend non-financial disclosure rules to large, unlisted companies and also bring in lighter requirements for small and medium-sized enterprises (SMEs).  The changes mean around 50,000 companies will have to follow ‘detailed EU sustainabilit...
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Apr 02, 2021
Senate Banking Committee chair seeks to overturn 14a-8 reforms
Senator Sherrod Brown, D-Ohio, has launched an effort to overturn SEC reforms that change the shareholder proposal process and have sparked widespread concern among investors. Brown last week introduced a joint resolution stating that ‘Congress disapproves the rule submitted by the [SEC] relating to ‘Procedural requirements and resubmission thresholds und...
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Apr 02, 2021
Star Market’s success is reshaping how companies go public in China
In 2020, an equities market that had been in existence for less than two years attracted nearly half of all IPO proceeds in mainland China. Star Market – or, to give it its impressive full name, the Shanghai Stock Exchange Science and Technology Innovation Board – has a growth story as remarkable as the ‘new economy’ companies that flock to its doors. The market has also drawn scrutiny for its dramatic first-day trading gains and wild price swings. But given...
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Mar 10, 2021
SEC accuses AT&T of Reg FD violations
The SEC has accused AT&T of violating Regulation FD and has charged three of its investor relations executives with aiding and abetting those alleged violations by selectively disclosing material non-public information to research analysts – accusations the company rejects. ‘Regulation FD levels the playing field by requiring that issuers disclosing material information do so broadly to the investing public, not just to select analysts,’ says Richard Best...
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Mar 04, 2021
Change rules on Spacs and dual-class shares to attract more IPOs, advises review of UK market
The UK should relax rules around special purpose acquisition companies (Spacs), free-float requirements and dual-class shares to encourage more IPOs in London, according to a state-commissioned review. The document sets out a series of recommendations to ease ‘burdensome’ listing rules and make the UK a more attractive place to go public, especially for ‘new economy’ companies in the tech and life sciences sectors.  ‘Looking at our relative perform...
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Mar 03, 2021
Senators eye diversity, climate and political spending at Gensler hearing
Disagreements between Democrats and Republicans over the SEC’s role in addressing matters such as climate change, political spending and diversity were highlighted at a congressional hearing on Tuesday. Members of the Senate Banking Committee gathered virtually to question Gary Gensler and Rohit Chopra as President Joe Biden’s picks to lead the SEC and Consumer Financial Protection Bureau, respectively. Among other things, discussion returned multiple times to m...
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Feb 19, 2021
The story behind Robinhood’s decision to halt GameStop buying
Robinhood’s decision to halt buying activity on GameStop stock on January 28 was a result of ‘extraordinary’ trading and subsequent complications posed by clearing rules, the company’s CEO Vlad Tenev told the House Financial Services Committee during testimony yesterday. The committee meeting was convened to explore whether market manipulation took place in late January ...
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