Connect with us

Popular World News

U.S. SEC chief to review Trump-era proxy rules, may draft replacement By Reuters

Ireland extends main COVID-19 supports for firms, tapers others By Reuters


U.S. SEC chief to review Trump-era proxy rules, may draft replacement By Reuters

© Reuters. FILE PHOTO: Gary Gensler testifies at a Senate Banking, Housing and Urban Affairs Committee hearing on Capitol Hill July 30, 2013. REUTERS/Jose Luis Magana

By Katanga Johnson WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission (SEC) chair said on Tuesday the agency will review shareholder voting rule changes adopted under the administration of former President Donald Trump that have faced criticism for weakening investor power. Gary Gensler, appointed by Democratic U.S. President Joe Biden, said the regulator would consider drafting a new proposal for overseeing proxy advisers – firms that recommend to investors on how to vote in corporate elections and cast ballots on behalf of some asset managers. As proxy advisers have grown more influential on hot button corporate governance issues such as climate change, compensation and diversity in recent years, corporate lobbyists have pushed for greater oversight of the firms. In August 2019, the SEC issued guidance requiring proxy voting firms take more steps to disclose how they craft their shareholder recommendations. The agency also outlined steps that the firms should consider to ensure they are actually voting the way investors designate. In July 2020, the agency finalized restrictions on proxy advisers by requiring them to show their voting recommendations to public companies at the same time or before sending them to clients. The agency also raised the bar for these firms by mandating they inform their clients of public companies’ responses to their advice. At the time, Democratic SEC Commissioner Allison Lee voted against the change on the basis that it added “complexity and cost” to the proxy voting system, while investor advocates said the rules infringed on proxy firms’ free speech.
Consumer groups had widely expected Democrats to unpick Trump-era changes on shareholder voting rights. In March, U.S. Senate Democrats introduced a resolution to rescind an SEC rule that they said would make it harder for shareholders to get issues onto corporate ballots.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!