UK: PIRC's principles of best practice for proxy voting and corporate governance advisers

Pensions Investment Research Consultants Ltd. - PIRC - has published a set of best practice principles intended to provide a framework for responsible behaviour by voting advisory services: see here (pdf). In doing so, PIRC hopes to start a debate about what is expected of proxy voting advisors with regard to disclosure and accountability. PIRC's principles are:

• Clear voting policy guidelines should be made available to clients, the companies whom the adviser is monitoring and to the market.
• A clear audit trail and explanation of the process for assessing companies and making voting recommendations should be available to clients and the companies monitored.
• Possible conflicts of interest should be disclosed to clients and to companies monitored and, where necessary, to market regulators (ie paid consulting with companies).
• Companies monitored should be given reasonable opportunity to comment on voting recommendations made and the basis of such recommendations.
• Voting agencies should routinely report to clients on actions taken on their behalf.
• All voting recommendations made by a voting adviser should be publicly disclosed post-meeting.