Divided SEC Tightens Regulations On Proxy Advisory Firms
Law360 (July 22, 2020, 8:24 PM EDT) -- A divided U.S. Securities and Exchange Commission on Wednesday agreed to enact tighter regulations on proxy advisers to the cheers of business advocates, despite loud objections by critics who say the new regulations harm investors.
The SEC voted 3-1 to enact rules that would require proxy advisers to increase disclosure of "material" conflicts of interest and enact other policies that would allow companies to review and respond to proxy firms' recommendations before ballots are cast.
The SEC also endorsed guidance explaining certain fiduciary duties for asset managers that rely on proxy firms' advice by a 3-1 vote. Commissioner Allison Lee dissented...
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