Publication
“AI and sustainability - cure or curse?”
While AI can help resolve data issues in sustainable investing, it can create problems such as information breaches and inherent bias in data.
Luxembourg | Publication | September 2019
Law n°562 of August 1, 2019 implementing the Directive (EU) 2017/828 with regards to the encouragement of long-term shareholder engagement (the SRD II) and amending the Luxembourg law of May 24, 2011 on the exercise of certain rights of shareholders in listed companies (the Law) was published on August 20, 2019.
In addition to the Law, a new Regulation (EU) 2018/1212 will become applicable from September 3, 2020, aimed at improving the communication between listed companies and their shareholders.
The Law applies to:
Directors of the relevant entities will be personally and jointly liable for any damage resulting from the breach of their respective obligations imposed by the Law.
Asset managers are subject to transparency obligations (i) relating to their engagement policy describing the integration of shareholder engagement into their investment strategy and (ii) towards institutional investors.
Institutional investors are subject to (i) transparency obligations similar to those of asset managers and (ii) disclosure requirements in connection with equity investment strategy and agreements entered into with asset managers.
Intermediaries are subject to obligations relating to the transmission of information (i) to the Issuer to allow the identification of shareholders and (ii) to the shareholders to allow the exercise of their rights. In addition, they must (iii) facilitate the exercise of shareholder rights and (iv) disclose the applicable non-discriminatory and proportional charges for services provided to shareholders.
Proxy advisors are subject to disclosure obligations with respect of (i) their code of conduct or justification in case of non-compliance and (ii) annual disclosure of key information in relation to their research and voting recommendations.
Issuers are subject to obligations relating to (i) transmission of information to shareholders and facilitation of the exercise of their rights, (ii) voting/approval rights of shareholders on, and disclosure of, remuneration policy and remuneration report and (iii) the submission of material related party transactions to the approval of the competent management body.
Publication
While AI can help resolve data issues in sustainable investing, it can create problems such as information breaches and inherent bias in data.
Publication
In this edition of Regulation Around the World we review recent steps that financial services regulatory authorities have taken as regards investment research.
Publication
The ongoing conflicts and further geopolitical tensions in Eastern Europe and the Middle East, coupled with upcoming elections in a number of key countries including the US and the UK, make 2024 challenging to predict what impact this will have on the insurance sector.
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