The CSA Decide To Regulate Proxy Advisory Firms Through Policy-Based Approach

On September 19, 2013, the Canadian Securities Administrators published CSA Notice 25-301 to provide an update to market participants on the results of their consultation on the potential regulation of proxy advisory firms.

After review of the comments received, the CSA have concluded that they will regulate proxy advisory firms through a policy-based approach, which they intend to publish in the first quarter of 2014.

Background

Proxy advisory firms provide a variety of advisory services to different categories of clients, including institutional investors and issuers. The services offered by these firms to institutional investors include providing analyses with respect to matters to be voted at shareholders' meetings and making vote recommendations regarding such matters. Some firms also provide consulting services to issuers, including in relation to corporate governance, executive compensation and the development of proposals to be submitted to shareholders.