Transparency of proxy advice
Th submission to the Treasury in response to the consultation in relation to Greater Transparency of Proxy Advice was prepared by the Corporations Committee of the Business Law Section.
The regulation of proxy advice is a controversial issue, and the committee’s members have a range of differing perspectives. A common element, however, is that there are problems with:
- limits on jurisdictional power to effectively regulate this area on a ‘level playing field’ basis between proxy advisers in Australia and offshore;
- broader issues of different practices in different segments of the institutional market, within Australia and offshore; and
- the risk of potentially deterring foreign investment into Australia.
The committeee strongly recommend that this consultation paper be withdrawn, and further inquiries be undertaken before proceeding with proposals in this area.
You can read the full submission below.