Exclusive-Glass Lewis mulls US investment adviser registration, could ease criticism

By Ross Kerber

(Reuters) -A apical Glass Lewis enforcement said the steadfast whitethorn registry itself arsenic a U.S. concern ​adviser, which would taxable it to much regularisation but perchance assuage disapproval ‌from firm executives and Republican politicians implicit its proxy voting recommendations.

"We're earnestly considering registration arsenic ‌an concern adviser" with the Securities and Exchange Commission successful Washington, Glass Lewis Chief Strategy Officer Cheryl Gustitus told Reuters successful an interrogation connected Friday.

Gustitus did not springiness a timeline connected erstwhile the company, owned by Canada's Peloton Capital Management and ⁠its Chairman Stephen Smith, ‌might marque a decision. But she said that the substance should beryllium seen successful conjunction with different steps Glass Lewis has ‍taken to recast the influential relation it plays successful U.S. firm governance nether Chief Executive Bob Mann, who took implicit past year.

For instance, past period Glass Lewis said ​it volition extremity its "benchmark" proxy voting recommendations successful 2027, and ‌Gustitus said clients volition beryllium capable to take among assorted approaches for its research.

"We're trying to evolve, we're not digging in," Gustitus said.

Glass Lewis and its larger rival Institutional Shareholder Services person faced Republican disapproval and investigations implicit their recommendations connected however large organization investors should ballot astatine firm yearly ⁠meetings connected matters similar enforcement wage oregon clime ​issues.

This year, some firms backed less ​shareholder resolutions connected biology matters arsenic companies ramped up clime disclosures.

ISS has been a registered concern advisor with the SEC for astir 25 years,‍ giving the Wall ⁠Street regulator the powerfulness to reappraisal things similar however the institution manages imaginable conflicts of interest.

Glass Lewis was antecedently registered with the bureau but withdrew the ⁠status successful 2005, saying it was inappropriate due to the fact that among different things the steadfast did not urge ‌clients trade, purchase, merchantability oregon clasp securities.

(Reporting by ‌Ross Kerber, Editing by Nick Zieminski)