BlackRock resumes talks with companies following SEC guidance

BLACKROCK has restarted its investment stewardship meetings with companies after a short pause used to assess new US Securities and Exchange Commission (SEC) guidelines about the influence of asset managers when they meet with corporations.

The money manager last week “temporarily paused” the corporate engagements and restarted them this week, the New York-based firm said on Thursday (Feb 20).

“We are complying with the new requirements including by highlighting our role as a ‘passive’ investor at the start of each engagement,” the company, which is the world’s largest asset manager, said. “BlackRock does not use engagement as a way to control publicly traded companies.”

The SEC, under new leadership since President Donald Trump took office, published guidance placing more onerous regulatory requirements on asset managers that may endeavour to influence the conduct of the companies in which they invest.

Under the SEC’s new policy, investors seeking to influence corporate behaviour on issues such as environmental, social or political policies would be treated more akin to activist investors such as hedge funds. BLOOMBERG

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