More On Legal & Compliancefrom The Advisor's Professional Library
- Differences Between State and SEC Regulation of Investment Advisors States may impose licensing or registration requirements on IARs doing business in their jurisdiction, even if the IAR works for an SEC-registered firm. States may investigate and prosecute fraud by any IAR in their jurisdiction, even if the individual works for an SEC-registered firm.
- Anti-Fraud Provisions of the Investment Advisers Act RIAs and IARs should view themselves as fiduciaries at all times, whether they meet the legal definition or not. Deviating from the fiduciary standard of full disclosure while courting clients may cause the advisor significant problems.
The companies targeted with 2010 proxy resolutions include some of the largest energy suppliers, such as ExxonMobil and ConocoPhillips, as well as homebuilders, retail chains and financial institutions. (See a complete list of the climate-related resolutions here.)
These climate change disclosure resolutions were filed by public pension funds as well as labor, foundation, religious and other institutional investors, many of which are part of the Investor Network on Climate Risk (INCR), an alliance of more than 80 institutional investors with collective assets totaling more than $8 trillion.
"We want our companies to closely look at the impact climate change legislation and regulation have on them, to realistically assess those risks, and to consider the indirect consequences of climate change-driven regulation and business trends on their activities," said Jack Ehnes, CEO of CalSTRS, the California State Teachers Retirement System which manages $131 billion dollars in assets. "The SEC's interpretive guidance outlines exactly the kind of action we have been asking our portfolio companies to take with regards to the issues raised by climate change. It fits with our role as a long-term investor focused on providing lasting value for the educators of California and their families."