Regulation Archive

Oct 30, 2020
How IR teams are preparing for the US election
Ahead of the US presidential election next Tuesday, IR Magazine looks at how a number of IR teams have prepared for the uncertainty in the market, the volatility that is beginning to pick up and the different potential outcomes. Traditionally investors take a cautious approach heading into the second half of an election year, and this year’s election coinc...
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Sep 28, 2020
SEC finalizes Rule 14a-8 reforms
In a split-decision, the SEC last week approved changes to the shareholder proposal process that have sparked thousands of comment letters and widespread concern among investors. The commission voted 3-2 in favor of amendments to Rule 14a-8 that will ramp up the thresholds shareholders must meet to get a measure on a proxy statement either for a first time or to keep it on the ballot if it fails to secure majority backing. The final version of the rule does, however...
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Sep 16, 2020
Covid-19 prompts widespread tightening of foreign investment controls
Many of the world’s largest economies have strengthened foreign investment rules since the start of the Covid-19 pandemic, raising the complexity for companies trying to complete cross-border deals, according to new research. Since March, 57 percent of countries in the Organisation for Economic Co-operation and Development (OECD) have enacted or plan tighter controls on foreign investments, finds a study by Linklaters. Of the 37 OECD member countries, 14 have hard...
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Aug 04, 2020
Debate continues over 14a-8 reform plans
The SEC’s plans to reform the process by which shareholder proposals reach a vote – or companies exclude them from the proxy statement – continue to divide the governance community. Although the official deadline for feedback on plans to reform Rule 14a-8 was in February, commenters have been filing letters with the agency as recently as July 21. A panel discussion during Corp...
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Jul 24, 2020
The week in investor relations: Help for activists and an uptick in M&A
– The SEC’s proposed changes to 13F filings could allow activists to better hide their positions in companies, warned lawyers and advisers who spoke to the Financial Times (paywall). Currently firms with more than $100 mn in US stocks need to disclose their positions once a quarter, but that would rise to $3.5 bn under the suggested change. The move would offer ‘another significant...
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Jul 23, 2020
SEC approves revised proxy adviser reforms
The SEC yesterday voted to adopt measures governing the proxy advisory industry but drew back from more far-reaching requirements it had initially proposed. Under the final rule amendments, proxy advisers will have to provide ‘specified conflicts-of-interest disclosure in their proxy voting advice’. They will also have to adopt policies and procedures reasonably designed to ensure companies that are the subject of proxy voting advice have the advice made availab...
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Jul 17, 2020
Investor groups urge SEC to help improve virtual AGMs
A coalition of major investor groups has called on the SEC to take action to avoid a repeat of what it says was a proxy season dominated by virtual AGMs that were a ‘poor substitute’ for the usual in-person events. Health and safety considerations arising from the Covid-19 pandemic have led most US companies to switch to a virtual format for this year’s shareholder meeting. In a ...
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Jun 26, 2020
Short-sellers need more transparency, says former SEC commissioner
Former SEC commissioner Robert Jackson says he is troubled by the ‘increasing evidence of manipulation through short-selling’, and calls on his former colleagues at the SEC to consider a proposal for greater transparency for short-sellers. Speaking earlier this week at Fraud Fest – an event organized by UC Berkeley School of Law – Jackson acknowledged that short-sellers cause animated debate, which can cloud decisions about how they should be treated by regu...
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Jun 19, 2020
The week in investor relations: Sustainable funds, volatility and cash levels
– The Financial Times (paywall) reported that six out of 10 sustainable funds outperformed their conventional fund equivalents over the last 10 years. The study was conducted by Morningstar and used a sample of 745 sustainable funds based in Europe. – The disruption to traditional AGMs caused by Covid-19 could be a starting point for reform of the shareholder meeting, noted th...
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