SEC warns asset managers over activist campaign coordination

The SEC has cautioned asset managers that coordinating activity to sway companies could bring the stricter disclosure rules usually applied to activist investors, the Financial Times reported, as cited by Hedgeweek. The warning follows a probe into BlackRock, Vanguard and State Street over the 2021 campaign in which three ExxonMobil directors were replaced after Engine No1 challenged the board. No enforcement action was taken, but the SEC cited serious concerns about some managers in the Climate Action 100+ coalition. Managers risk losing passive-investor treatment, which allows the shorter Form 13G rather than Form 13D. The SEC said the report is guidance ahead of the 2027 proxy season.