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SEC warns asset managers over coordinated activist campaigns

The regulator said it has “serious concerns” about some conduct tied to the Climate Action 100+ coalition and cautioned passive firms could lose their lighter disclosure treatment.

Reported · Written up by our desk · Fund Industry

The US Securities and Exchange Commission warned asset managers that coordinating activities to influence companies could trigger tougher disclosure requirements typically reserved for activist investors, according to Hedgeweek citing a Financial Times report.

The warning followed an SEC investigation into a 2021 campaign in which BlackRock, Vanguard and State Street were involved, after which three ExxonMobil directors were replaced following Engine No1s board challenge.

The SEC stopped short of taking enforcement action against the firms, but said it has “serious concerns” about conduct by some asset managers connected to the Climate Action 100+ investor coalition.

The regulator said fund groups should be cautious about similar coordinated activities, because passive investors can generally use shorter Form 13G reporting, while activists or coordinated investors can face more demanding disclosure requirements.

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