On 10 January 2023 the Investor Forum published the third update of the Collective Engagement Framework. The 2022 review again confirms that the Framework is “fit for purpose.”
At a time when collaborative initiatives around the world are being scrutinised, this framework demonstrates the strong foundations on which the Forum’s engagement activity is built and provides evidence that all of the Forum’s activities are underpinned by a rigorous assessment of key legal and regulatory risks.
In the 2022 review we have paid particular attention to the evolving practice in dialogue between companies and their shareholders on ESG matters and the implications for the Investor Forum’s approach to facilitating effective dialogue on a wider range of issues whilst ensuring that professional discipline is maintained at all times, and for all participants.
In this review, we have:
- undertaken an in-depth review of UK Market Abuse Regulations;
- reflected updated regulatory guidance from the U.S. Federal Reserve relating to the U.S. Bank Holding Company Act of 1956;
- included a discussion of potential changes to group filing requirements under Section 13 of the U.S. Securities Exchange Act of 1934;
- taken into account developments in competition law, regulation and practice in the UK, U.S. and EU; and
- included an additional chapter which describes the protocols that cover the wider range of activities which the Forum now undertakes.
We believe that the Framework represents a critical part of the UK public market infrastructure and its worth has been proven repeatedly in our practical experience since 2015. It has made an important contribution to the development of engagement practice and plays a crucial role in enabling effective collective engagement. We are enormously thankful to the panel of law firms who support us.