CSA’s Light Touch Proxy Advisory Firm Proposal May Disappoint Issuers

To address market participants' concerns about services provided by proxy advisory firms, the Canadian Securities Administrators (CSA) have published for comment proposed National Policy 25-201 Guidance for Proxy Advisory Firms (Proposed Policy). The purpose of the Proposed Policy is to set out recommended practices for proxy advisory firms in relation to the services they provide to their clients and their activities.

In June 2012, the CSA published for comment Consultation Paper 25-401 Potential Regulation of Proxy Advisory Firms. For details, please access our June 2012 Blakes Bulletin: CSA Invite Comments on Regulating Proxy Advisory Firms. After reviewing the comments received on the Consultation Paper, the CSA has concluded that in their view a policy-based approach providing guidance on recommended practices and disclosure for proxy advisory firms represents a sufficient and meaningful response to address the different perspectives of respective market