(May 13): Switzerland plans to introduce new disclosure rules for listed companies to avoid conflicts of interest with proxy advisers, opening a consultation that lets stakeholders comment on the proposed change until September.
Proxy advisers can influence major blocs of shareholder votes, including such held by pension funds and institutional investors.
The proposal targets concerns that advisers both assess listed companies for investors and sell consulting services to the same firms.
The Swiss plan, which the government backed on Wednesday, requires corporations to tell their shareholders prior to an annual general meeting about any circumstances that might give rise to a conflict of interest.
“Shareholders must be able to clearly see whether the proxy adviser firms are also working for the company” on which they give recommendations, officials said in a statement.
Debates on the legislative change date back to 2016 and it will probably take some more years before new rules take effect.
See also: French jobless rate jumps above 8% for first time since 2021
In the consultation, everyone interested can comment on the plan until Sept 4.
Uploaded by Lam Seng Fatt
