The Australian Institute of Company Directors (AICD) has welcomed the Federal Government’s consultation on options to increase the transparency and accountability of proxy advice in line with recent reforms in the United Kingdom and United States.
AICD CEO and Managing Director, Angus Armour, said, “The AICD has long supported more robust regulation of proxy advisers. The current lack of minimum standards means a key market actor is largely unregulated.
“Given the important role of proxy advisers, it is vital that their advice is subject to appropriate safeguards to ensure it is fair and accurate.
“The AICD welcomes this move by the Government to consult on measures to help facilitate greater transparency.”
The Government consultation will consider requirements for proxy advisers to:
- hold an Australian Financial Services Licence for governance recommendations;
- provide their research and voting recommendations to companies at least five business days before release to support fact-checking; and
- notify their clients how to access a company’s response to their report.
These moves would bring Australia closer into line with other sophisticated capital markets, and would help bolster the overall governance of our listed markets.
Media Contact: Maegen Sykes 0439 167 567
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