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Blakkrock canceled meetings with companies in the middle of a shareholder battle because he was afraid that he could break the guidelines of investors’ activism that the US Securities and Exchange Commission had issued last week.
Black -haired Other property managers usually talk to companies about voting before campaigns of activism, as well as routine issues of ballots at the annual meetings of shareholders.
But this practice has questioned the SEC’s guidelines, which was widely interpreted as an attack on use environmental, social and management (ESG) Investment factors. Change imposes more difficult regulatory requirements for funds manager that can strive to influence corporate behavior.
“This leadership exploded last week like a grenade in the midst of waiting for a proxy fight,” said Kai Liekefett, a partner in Sidley, who represents companies in activist struggles that will vote immediately.
Blackkck, the world’s largest property manager, temporarily paused for “management” meetings to evaluate what the change of the SEC rules means, said one person familiar with the issue.
Sec move It is part of the greater regulatory effort of state and federal officials to take over the power of the largest funds managers, which often have as many as 10 percent of most US companies because of the pure size of their funds to monitor the index.
Until February 11, SEC said that the managers of funds that had owned more than 5 percent of the company do not consider “impact on” corporate behavior when they operated businesses on ranging from the compensation of the executive power to environmental policies. As such, they were allowed to submit a relatively short form of their proportions, known as the 13 -g, which is only for “passive investors”.
According to the new rules, the criteria that would initiate a more strenuous 13-D application have expanded. Traditionally, 13-D applications are generally reserved for activist investors such as Hedge Funds or Investment Managers who want to influence control.
Guidelines complicate the joint practice of large emergency funds managers to discover climate risks, diversify their committees and take other steps that they say are in the interests of long -term shareholders.
Although some of these issues are closely related to US cultural wars, rules also impair efforts to remove plans for poisonous companies and other routine corporate management issues that have little to do with environmental and social issues.
The 13-D form requires detailed explanations why and how the investor has acquired his share and purpose of investment. Activist investors also face firmer deadlines to form an update about the purchase of shares or sales with SEC.
Although “this is a change against the ESG,” said a lawyer who advises great managers, his effects would insert the investment industry. “The practical effect of this will make it difficult to engage in ESG themes, and this will put more pressure on managers when they think about how directly and informally deal with.”
Blakkrock, which has more than 11 meters from the property, under the influence of conservative American legislators, has been influenced by corporate America, given significant share in almost every major US company.
The change of SEC came due to the noise of action by the agency to move away from the biden administration policies. Were adopted while Paul Atkins, President Donald Trump Nominated for a sec chairwaiting for the Senate confirmation.
Blackkck and sec they refused to comment. It was not immediately clear if Blackkck’s biggest rivals, Vanguard and State Street, also canceled meetings.
Stefania Palma contributed to the reporting of Washington
