By Brian Croce
Source: Pensions & Investments
The SEC’s division of corporation finance will not recommend enforcement actions related to a series of amendments to the proxy-voting advice rule that were finalized last year after Chairman Gary Gensler announced Tuesday that he asked the staff to consider recommending further regulatory action on the issue.
In July, the SEC, in a 3-1 vote with Republicans in control, approved sweeping changes to rules governing proxy advisory firms. The rule amendments made clear that proxy voting advice generally constitutes a solicitation; required proxy advisory firms to disclose conflicts of interests to clients; allowed companies that are the subject of voting advice to be able to access that advice prior to or at the same time as the advice is disseminated to clients; and obliged proxy advisory firms to provide clients with access to any response the company provides on voting advice before those clients vote.
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