Governance News 13 October 2021

40 minute read + (PDF download)  13.10.2021 Mark Standen, Siobhan Doherty, Kate Hilder

This issue covers key financial services developments including the second business interruption insurance test case, the FSC's proposals to cut the cost of advice, and various Hayne-related developments.  In addition, this issue covers key ESG-related developments and more…

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https://www.minterellison.com/articles/governance-news-13-october-2021

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Boards and Directors Navigation Show below Hide below

  • DINS are coming: What directors need to know now

Diversity Navigation Show below Hide below

  • International study finds Australia is lagging other countries on closing the gender pay gap, ANU recommends three changes
  • In Brief | Cranfield's latest annual Female FTSE Board Report tracking board gender diversity at FTSE100 and FTSE250 companies finds that while the Hampton-Alexander minimum female board representation target of 33% has been met in aggregate, 21% of FTSE 100 boards and 32% of FTSE 250 boards have yet to reach it.  The report suggests that this calls into question whether it is appropriate to consider the introduction of mandatory targets

Shareholder Activism Navigation Show below Hide below

  • SEC changes shareholder voting rules, CII says the changes will unfairly 'muzzle' smaller shareholders, files amicus brief in support of the lawsuit challenging the amendments
  • Fortescue sets net-zero by 2040 target for Scope 3 emissions, the ACCR has welcomed the commitment and called on other companies to follow suit
  • Engine No 1 announces support for General Motors plan to transition to 100% electric vehicles by 2035

Institutional Shareholders and Stewardship Navigation Show below Hide below

  • ASFA sharpens its focus on climate risk, seeks feedback on whether a 2050 net zero target is sufficiently ambitious
  • Vanguard's latest stewardship report for H1 2021
  • Gaining traction: Investor support for a global campaign calling on high emitters to set science based emissions reduction targets increases 60% on last year

Meetings and Proxy Advisers Navigation Show below Hide below

  • ISS has released its climate policy and benchmark policy survey results

Disclosure and Reporting Navigation Show below Hide below

  • Top Story | The 'third wave' of climate litigation: greenwashing
  • Enhanced 'Say on Pay' disclosure: SEC is consulting on proposed changes to proxy voting reporting requirements

Financial Services Navigation Show below Hide below

  • Top Story | COVID-19 Business Interruption Insurance: Second Test Case
  • Past its use-by date?  FSC has put forward a proposed roadmap for the reform of the financial advice regulatory framework to significantly cut the cost of advice
  • Supporting Hayne implementation: FSC to introduce an enforceable standard prohibiting the use of occupational exclusions and restrictive definitions within default group life insurance policies in superannuation amongst FSC members
  • Hayne implementation: Consumer advocates, legal centres and professional associations call for the proposed CSLR to be broadened
  • Hayne implementation: Consultation on regulations and a legislative instrument to support implementation of the Better Advice Bill
  • Countering the rising risks of residential mortgage lending: APRA increases banks’ loan serviceability expectations
  • AFCA's latest complaints data shows a fall in the number of complaints against major banks, flags the volume of funeral plan complaints as an area of concern

Risk Management Navigation Show below Hide below

  • A roadmap to net zero?  Independent MP Zali Steggal to reintroduce revised climate change Bills
  • A science based framework for companies to set net-zero targets: SBTi to launch a global standard to ensure net zero targets are sufficiently rigorous
  • An excuse to 'greenwash'?  Advocacy groups have called for membership requirements for the UN-convened Glasgow Financial Alliance for Net Zero to be strengthened
  • Concrete industry announces net zero by 2050 ambition
  • Climate risk: Calls for US Treasury Secretary Janet Yellen to issue a climate-risk mitigation 'roadmap', calls for financial regulators to issue supervisory guidance

Restructuring and Insolvency Navigation Show below Hide below

  • ASIC gives companies in external administration more time to comply with AGM and financial reporting obligations
  • Combatting illegal phoenix activity: ASIC has released information sheet 261: ASIC orders about credit-defeating dispositions

Other News Navigation Show below Hide below

  • In Brief | Treasurer welcomes global tax agreement: 136 of the 140 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, representing more than 90% of global GDP, have signed a global tax agreement that will see certain Multinational Enterprises (MNEs) subject to a minimum 15% tax rate from 2023.  The aim is to see the world's largest and most profitable MNEs 'pay a fair share of tax wherever they operate and generate profits'

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https://www.minterellison.com/articles/governance-news-13-october-2021

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