Best Practice Principles For Proxy Advisors

On 7 March 2014, the Best Practice Principles Group, comprising members of the proxy advisory industry, published the Best Practice Principles for Providers of Shareholder Voting Research & Analysis (the "Principles"). The Principles were developed in response to an ESMA report which encouraged the proxy advisory industry to establish its own code of conduct, and were refined after consultation in the last quarter of 2013.

Proxy advisors research and analyse the corporate disclosures of listed companies with a view to informing investors' voting decisions. The Principles address their service quality, conflicts-of-interest management and communication policies for communicating with issuers and other market participants. The Principles are supported by guidance that explains their background, relevance and application. Signatories to the Principles should adopt them on a comply-or-explain basis.