I am pleased to introduce this report on the growing influence of capital market service providers, such as proxy advisors, ESG rating and data providers, and index providers in shaping investor decisions and corporate governance worldwide. Their analyses and benchmarks guide investment and voting choices, making them key actors in the governance ecosystem and drivers of capital formation.
This report examines how corporate governance frameworks address two important issues for service providers, in line with the G20/OECD Principles of Corporate Governance: the transparency of their methodologies, and the management and disclosure of conflicts of interest. Covering 50 jurisdictions and featuring three in-depth case studies on Belgium, Chile and India, it offers a comprehensive overview of regulatory approaches and practical lessons.
Regulatory frameworks for service providers are still developing, with few mature regulatory and oversight regimes. Conflicts of interest remain a significant concern for companies and investors, often linked to multiple business lines or client relationships. Market concentration among a handful of large players makes it all the more important that policymakers act with proportionality in mind, crafting regulatory measures that address risks without unduly stifling innovation or competition.
The case studies complement the global overview by offering insights into how different jurisdictions are handling these challenges: Belgium reflects the broader EU framework; Chile offers an emerging market perspective with limited regulation of service providers; and India demonstrates the impact of a detailed regulatory framework that enhances transparency around proxy voting advice and ESG ratings. Case studies also show how local investors and companies use the inputs of global service providers, and what role these firms play in the development of domestic markets.
Finally, this report puts forward a set of important policy considerations to inform the ongoing debate on regulating and supervising capital market service providers. The aim is to strike the right balance between ensuring accountability while allowing them to perform their important role. By leveraging insights from 50 jurisdictions and detailed case studies, I am confident that the report’s rich comparative perspective will assist policymakers, regulators and market participants in shaping well-calibrated frameworks that uphold transparency and integrity in capital markets.
Jean-Paul Servais,
Chair, OECD Corporate Governance Committee