The European Securities and Markets Authority (ESMA) has published its Final Report on The Proxy Advisor Industry. The report contains an analysis of the responses received to its March 2012 consultation and sets out the next steps for ESMA and the industry.

The Report has found that there is no current market failure related to proxy advisors interaction with investors and issuers in the European Union (EU), which would require regulatory intervention. However, ESMA has identified a number of concerns regarding the independence of proxy advisors, and the accuracy and reliability of the advice provided which would benefit from improved clarity and understanding amongst stakeholders.

ESMA Press Release.

Final Report - Feedback Statement on the Consultation Regarding the Role of the Proxy