FN: ESMA opens review of proxy advisory firms

04 July 2011

The European Securities and Markets Authority has begun to review the role of proxy advisory firms, following the call from the Autorité des Marchés Financiers, the French regulator, for greater transparency on how the agencies reach their voting decisions.

A spokeswoman at ESMA said it was an area that they have been looking into for some time, and that they are also in dialogue with the US Securities and Exchange Commission about future proxy voting regulation.

A spokesman for Pirc, a UK proxy adviser, said: "There has not been anything like this in the UK to date, and it has certainly been overdue”.

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