Increased retail investor engagement as a result of the evolving market and regulatory framework
Global Fintech leader Broadridge Financial Solutions, announced its latest whitepaper on the trends driving the proxy voting and corporate governance activities of retail investors throughout Europe.
The whitepaper, The Continued Empowerment of the Retail Shareholder, looks at how ongoing reviews of the Capital Markets Union (CMU) and the Shareholder Rights Directive (SRDII), combined with wider adoption of new technology, a greater emphasis on user experience and a shift in the priorities of traditional and next-generation retail investors, are shaping the market and further engaging the retail segment.
“The evolving regulatory framework in Europe to support both ESG and shareholder voting, both for equities and funds will more than likely encourage even higher retail activity in the longer term,” said Demi Derem, General Manager of International Corporate Governance, Digital Transformation and Market Innovation at Broadridge. “Equipped with greater awareness and transparency around ESG credentials, the investing public will be more inclined to vote on key company issues such as board diversity and environmental criteria.”
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“It’s fascinating to see how the EU’s strategic focus on the retail investor as a pillar of its Capital Markets Union and the emphasis on governance as part of the ongoing review of SRD II are changing key dynamics for these investors across the region,” said Virginie O’Shea, the Founder of Firebrand Research, who worked with Broadridge to develop the whitepaper. “Working with Broadridge and their insights and data on corporate governance has enabled us to delve deeper into the underlying trends driving increased activity from retail investors.”
Broadridge works with financial intermediary firms internationally to provide them with a seamless and white-labelled proxy voting service that empowers their retail investor clients and drives higher levels of engagement. The user experience is consistent for clients across the various portals and mobile applications to allow voting from any location and using the financial institutions’ own branding and front ends where that is a preference.
Broadridge’s Investor Communication Solutions business sits at the center of a global network that connects hundreds of broker-dealers and wealth managers, thousands of public companies, tens of thousands of funds, more than 100 million individual investors and 750 million unique equity positions.
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