The draft technical standards specify the information that investment firms will have to disclose to show their influence over the companies in which they hold voting rights.
- The standards put forward comparable disclosures and detailed
instructions on investment firms’ voting rights, voting guidelines, and
voting behaviour.
The European Banking Authority (EBA) published today new
regulatory technical standards (RTS) on disclosure of investment policy
by investment firms. The final draft RTS put forward comparable
disclosures that should help stakeholders understand investment firms’
influence over the companies in which they hold voting rights and the
impact of investment firms’ policies on aspects such as the governance
or management of those companies.
The RTS put forward templates and tables for the disclosure of
information on the investment firm’s voting behaviour, explanation of
the votes, and the ratio of approved proposal, with the objective to
show if the investment firm is an active shareholder that generally uses
its voting rights, and how it uses them. They also include information
on the use of proxy advisory firms that should help address
uncertainties about potential conflicts of interest. Finally, they
include information on investment firms’ voting guidelines, including,
when relevant, a breakdown by geographical zone, economic sector or
topic of the resolution being voted.
These disclosure requirements apply to class 2 investment firms with
total assets above EUR 100 million. These firms will have to disclose
this information in relation to those companies whose shares are
admitted to trading on a regulated market and in which the proportion of
voting rights exceeds 5 % of all voting rights issued by the company.
Implementation date
The first disclosure date will be 31 December 2021.
EBA
© EBA
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