Securities and Exchange Commission Chairman Gary Gensler on Tuesday announced he is directing agency staff to consider whether to recommend further regulatory action regarding proxy voting advice, leading the SEC’s Division of Corporation Finance to pause related enforcement activity.
In July 2020, the SEC adopted requirements that proxy voting advice by proxy advisory firms, in order to rely on exemptions from the information and filing requirements of the proxy rules, must provide clients with tailored and comprehensive disclosure about their conflicts of interest. Firms also must establish policies and procedures designed to ensure companies that are the subject of their voting advice are able to see and respond to such guidance in a timely manner.
