BlackRock has resumed investment meetings with companies after the Securities and Exchange Commission (SEC) rolled out its new regulations. The company had to take a brief pause to understand the new rules before it continued to talk to investors.
According to a Thursday statement, the company confirmed that talks have restarted, after mentioning that it was taking a brief pause.
BlackRock restarts investment meetings after a brief pause
According to its statement, the firm mentioned that the pause helped the country understand the rules behind the investment. The rule, according to the firm, deals with how investors influence the conduct of the firms that they are funding.
“We are complying with the new requirements including by highlighting our role as a ‘passive’ investor at the start of each engagement,” the company said. “BlackRock does not use engagement as a way to control publicly traded companies.”
The SEC, under the new Trump administration and a new leadership, released a memo that talked about investor behaviors and the firms that they invest in. This means that asset management firms may face more scrutiny if they push for specific corporate actions.