Today, Treasurer Josh Frydenberg announced new rules on proxy advisors through the Treasury Laws Amendment (Greater Transparency of Proxy Advice) Regulations 2021.
The move will bolster regulatory oversight of proxy advice, and help support the overall governance of our listed markets.
AICD Managing Director and CEO Angus Armour, said, “Given the important role of proxy advisers, it is vital for investors that this industry is subject to appropriate safeguards to ensure their advice is accurate and comprehensive. The Government’s move to introduce these additional safeguards for this large global industry addresses these concerns.”
The AICD welcomes measures that extend the Australian Financial Services Licensing regime and require proxy advisers to provide a copy of their recommendations to companies on the same day they are provided to investors.
“The Government must be commended for bringing forward these important reforms that bring proxy advisers under the same licensing requirements as other market participants,” Mr Armour said.
As noted in the AICD’s submission to Treasury’s previous consultation, the AICD considers that robust independence obligations can also be implemented within a licensing regime, without necessarily impacting ownership or governance structures in the sector.