08.22.19
SEC Takes Action Aimed at Proxy Advisors for Shareholders
by: Andrew Ackerman
The SEC voted 3-2 to urge proxy advisors to take more steps to disclose how they craft their shareholder recommendations, issuing a broad warning for proxy advisors that convey incorrect information. The SEC also voted to issue new guidance to mutual fund managers that outlines steps they should consider if they become aware of potential factual errors or weaknesses in analysis from a proxy advisor. Elad Roisman, a Republican commissioner who is leading the SEC's overhaul, said retail investors are the ultimate beneficiaries of the new guidance. “These Main Street investors who invest their money in funds are the ones who will benefit from—or bear the cost of—these advisors' voting decisions. It is our job as regulators to help ensure that such advisors vote proxies in a manner consistent with their fiduciary obligations and that the proxy voting advice upon which they rely is complete and based on accurate information.”
Read the full article on Wall Street Journal