By Ross Carver
(Reuters) – Top mutual fund manager Vanguard has met with portfolio companies while reviewing the impact of new guidance on investor activities from the U.S. Securities and Exchange Commission, according to people familiar with the issue. It has been paused.
In a recent notice, the SEC, appointed by President Donald Trump, revised its interpretation of “reporting useful ownership.” .
From now on, according to the SEC, managers may need to use more complex Schedule 13D. This increases management, whether it emphasizes management on issues such as climate questions or whether the company has stopped protecting its board or poison takeover.
Vanguard put the pause in place because “we are trying to process and understand new guidelines to remain 13G filers rather than 13D filers,” a source discussed on condition of anonymity. one of them said.
The closing of the meeting could reduce the power of shareholder activists focusing on environmental, social, or governance questions, corporate lawyers state the clear goals of the SEC’s current leadership. However, it could reduce the input that executives receive from top investors when it comes to questions from traditional companies such as Executive Pay.
Vanguard representatives did not answer questions on Tuesday.
Rival asset manager BlackRock has also suspended meetings with several of its portfolio companies. Company representatives did not immediately comment on the status of these meetings on Tuesday.
(Reporting by Ross Carver, Edited by Leslie Adler)
