SEC Report: U.S. Investors’ Exposure to Domestic Chinese Issuers

The accounting fraud at Lukin Coffee is just the latest reason to raise concerns about investment risks in Chinese companies. The SEC has issued a new report that includes the exposure of the biggest pension funds in the UA. Excerpts here (footnotes omitted), full report below. More than 150 China-based companies with a combined market…

SEC panel says agency should add sustainability disclosure rules

The SEC should update its reporting requirements for issuers to include ESG factors, the commission’s investor advisory committee said Thursday, voting to approve a recommendation drafted by the committee’s investor-as-owner subcommittee. “The time has come for the SEC to address this issue,” said the recommendation. ESG disclosure from issuers will provide investors “with the material,…

Supplemental Comments on SEC Proposed Rules: Proxy Advisors and Shareholder Proposals

ValueEdge Advisors has submitted two more supplemental comments on the SEC’s proposed rules on proxy advisory firms and shareholder proposals. We are grateful to James McRitchie for giving us permission to include his excellent research on the support for governance-related shareholder proposals. The full text of both comments are linked below. SEC supplemental comment on…

CII Letter to SEC about PCAOB and China

The Council of Institutional Investors has written to the SEC to raise concerns about plans to cut back on investor protections and accounting oversight. The full letter is below. An excerpt (footnotes omitted): [We] respectfully request that the PCAOB investigate the matter to the extent possible and determine whether it is appropriate and in the…

Shareholder Proposals 2019—ESG No-Action Letter Trends and Strategies

Shareholder proposals relating to ESG matters are frequent targets for exclusion by companies, and based upon a survey of the no-action letters submitted during the 2019 proxy season, this trend continues. Over 40% of the no-action letters we reviewed for the 2019 proxy season related to a variety of ESG matters, and the arguments and…

VEA’s Second Supplemental Comment to the SEC on Proposed Proxy Advisor Rule

A second supplemental comment, reflecting new information and responses to some of the other comments: 1. Further Evidence that Corporate Claims of Zombie “Robo-Voting” are Bunk: We have noted previously that assertions that fund managers “robo-vote” are unsupported and contrary to the data. The findings of a new study by Lily Tomson of ShareAction prove…

SEC’s New Rules Undermine Shareholder Rights – Bloomberg

Yale’s Jonathan Macey on the SEC’s proposed rule on proxy advisors: It is indeed strange that the SEC, whose mission is to protect investors, is putting its thumb forcefully on the scale in favor of companies and against investors. Its proposal would land a one-two punch against corporate democracy and freedom of speech. Not only…