Best Practice Principles


In 2012 the European Securities and Markets Authority (ESMA) issued a discussion document for consultation that reviewed the role and practices of proxy voting services firms operating in Europe. ESMA recognised that the proxy advisory industry was expected to grow in prominence and that investors are, or are expected to be, increasingly using proxy advisor services.


In February 2013 following its review ESMA published a final report on the proxy advisory industry and found that “it has not been provided with clear evidence of market failure in relation to how proxy advisors interact with investors and issuers”.


PIRC felt that the concerns that had been raised by various consultation responses needed to be addressed. PIRC was pleased therefore to agree to participate in an initiative with fellow proxy voting advisory firms to establish a set of best practice principles that would form the basis of a guide to the market about what standards of behaviour should be expected from firms in their role and operations in relation to clients, the issuer community and the capital market as a whole


This proxy research industry initiative led to the establishment of the ‘Best Practice Principles for Providers of Shareholder Voting Research & Analysis’, published March 2014 (hereinafter ‘Best Practice Principles’ or BPP). PIRC is a signatory to these Principles and this statement constitutes PIRC’s compliance with these Principles as at September 2014. This statement is here:

‘PIRC Compliance Statement on Best Practice Principles’


‘Best Practice Principles for Providers of Shareholder Voting Research & Analysis’