Regulation Archive

Dec 03, 2019
Zevin Asset Management criticizes shareholder proposal reform plan
Zevin Asset Management has complained to the SEC about its plans to raise thresholds for submitting shareholder proposals, while other institutional investors are calling for more time to study the proposal. The Boston-based firm, which integrates ESG issues into its financial analysis, ‘strongly oppose[s]’ the agency’s proposal, arguing that it would ‘severely limit the rights of ...
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Nov 26, 2019
Stepping out of the dark: The rise of dark pools
The term dark pool – used to describe trading venues that provide alternatives to ‘lit’ national exchanges such as Nasdaq and the NYSE – suggests something shadowy and menacing. And yet in the US alone there are more than 40 SEC-approved alternative trading systems (the formal name for dark pools), and industry observers predict that a significant share of off-exchange trading occurs in these venues. Critics have suggested that dark pools lack the transparen...
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Nov 22, 2019
How will the Shareholder Rights Directive II change investor relations?
With everything going on in the capital markets right now – from trade wars to recessionary fears – you could be forgiven for overlooking the Shareholder Rights Directive (SRD) II, Europe’s latest tweak to its financial regulations. Even so, it remains surprising that when Hermes Investment Management surveyed institutional investors about the revised directive last year, a whopping ...
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Nov 08, 2019
SEC proposal highlights differences on shareholder proposals
The SEC on Tuesday voted to propose amendments to Rule 14a-8, which governs the process for determining which shareholder proposals wind up in a company’s proxy statement, in a move highlighting the differing views companies and investors have on the process. At present, a proponent must hold at least $2,000 or 1 percent of a company’s shares for at least one year to be eligible to submit a prop...
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Oct 30, 2019
CalPERS raises materiality concerns over SEC disclosure reforms
CalPERS is concerned about how companies would treat materiality in their regulatory disclosures under SEC plans to modernize corporate reporting. CEO Marcie Frost writes in a recent letter to the commission that, although the pension fund supports the proposal’s goals, the planned changes would ‘fall short’ of improving disclosures for investors and would require companies to go thr...
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Oct 17, 2019
CII ramps up pursuit of dual-class sunsets
The Council of Institutional Investors (CII) has asked the SEC to seek authority enabling the commission to, in effect, require companies to limit the length of time company founders can exert outsize control over companies after they go public. CII general counsel Jeffrey Mahoney notes in a letter sent to the SEC earlier this month that the group ...
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Sep 25, 2019
Senators introduce bill to extend whistleblower protection
A bipartisan group of senators this week introduced a bill designed to expand the scope of protection for whistleblowers who bring to light violations of US securities and commodities law. The bill would extend protection from retaliation to whistleblowers who opt to report wrongdoing internally before or instead of reporting directly to the SEC or Commodities Futures Trading Commission (CFTC...
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Sep 24, 2019
Groups reject revised 14a-8 no-action approach
Groups including Ceres and the Council of Institutional Investors have called for the SEC’s division of corporation finance to drop its recently revised approach to handling shareholder proposals that companies want to exclude from AGMs. The groups argue in a letter to division director William Hinman that the altered process ‘reduces transparency and ...
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Sep 23, 2019
IROs let off steam about Mifid II
IROs used a recent survey about Mifid II to let off some steam about the European regulation. Half of IR professionals say they have a negative view of the impact of Mifid II, while just 14 percent take a positive view, according to a new research report from IR Magazine. The research polled 79 IROs on their feelings about Mifid II and its impact on their IR programs. The sur...
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Sep 16, 2019
Mifid II report now available
The latest report from IR Magazine examines the impact that Mifid II regulation has had on investor relations since its introduction in January 2018. Based on interviews with 79 members of the IR Magazine research panel, data is broken down by region, cap size and overall impression of Mifid II. The report looks at how IROs view Mifid II in general and relates this to how it has affected aspects of IROs’ workload in particular. It also examines t...
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