French regulator urges investors not to exercise proxies by proxy

The "Anglo-Saxon" proxy voting agencies have become the focal point of shareholder activism and, for some, raise concerns about how voting can become detached ownership and economic interest. The French securities regulator AMF has joined the listed of complainants, with a statement to institutional investors reminding them of their need to take share ownership seriously. It singles out the "Anglo-Saxons", though France had home-grown proxy agencies, but the point is a general one. Using a proxy voting agency is does not release the investors from responsibilities for monitoring corporate policy and decisions. It wants the agencies to make clear statements about their voting policies and disseminate them publicly. They should communicate with the companies concerned as well, giving them the chance to comment on recommendations within the documents. It also wants greater vigilance to prevent conflicts of interest.

Source document: The AMF statement is a three-page pdf file, in French.