"JPMorgan's asset and wealth management division is ditching its long-held practice of using external proxy advisors for advice on shareholder voting decisions. The bank said it was "the first major investment firm to fully eliminate any reliance on external proxy advisors for our U.S. voting process," according to an excerpt from an internal memo seen by Business Insider."
"JPMorgan's asset management division holds $7 trillion in client assets, giving it a vote in thousands of shareholder decisions that include general governance decisions outside of finance questions. It's common practice in the industry to turn to proxy advisory firms for data collection, advice, and voting recommendations."
"The move away from proxy firms reinforced JPMorgan's "unwavering commitment to vote solely in clients' best interests, using our information advantage," the bank said in the memo. In place of external human advisors, the asset and wealth management unit is launching an in-house AI platform, called Proxy IQ, to support shareholder decisions, according to the memo."
JPMorgan Asset and Wealth Management is eliminating reliance on external proxy advisors for U.S. shareholder voting and will implement its own AI platform, Proxy IQ, to cover voting decisions. The change takes full effect on April 1 after a transition during the first quarter. The division manages $7 trillion in client assets and casts votes in thousands of shareholder matters, including governance issues beyond finance. Proxy advisory firms are common in the industry but have faced regulatory scrutiny and criticism. The shift is presented as a move to vote solely in clients' best interests using internal information and tools.
Read at Business Insider
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