SEC clarifies investment advisers’ proxy voting responsibilities

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Aug 21, 2019

On August 21, 2019, the Securities and Exchange Commission (SEC) issued “Commission Interpretation and Guidance Regarding the Applicability of the Proxy Rules to Proxy Voting Advice.”

The guidance addresses “the ability of investment advisers to establish a variety of different voting arrangements with their clients and matters they should consider when they use the services of a proxy advisory firm.” The guidance will become effective upon the date of its publication in the Federal Register.

The SEC also issued a 26-page interpretive release about proxy voting responsibilities for investment advisors, providing steps that mutual fund managers should consider if they become aware of potential factual errors or weaknesses in a proxy advisor’s analysis.

Review the press release and guidance on the SEC’s website.

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