SEC to Hold Roundtable on Proxy Advisory Services | Practical Law

SEC to Hold Roundtable on Proxy Advisory Services | Practical Law

The SEC will hold a public roundtable on December 5, 2013 to discuss the use of proxy advisory firm services by institutional investors and investment advisers.

SEC to Hold Roundtable on Proxy Advisory Services

Practical Law Legal Update 8-548-0745 (Approx. 3 pages)

SEC to Hold Roundtable on Proxy Advisory Services

by Practical Law Corporate & Securities
Published on 05 Nov 2013 • USA (National/Federal)
The SEC will hold a public roundtable on December 5, 2013 to discuss the use of proxy advisory firm services by institutional investors and investment advisers.
On December 5, 2013, the SEC will hold a public roundtable to discuss the use of proxy advisory firm services by institutional investors and investment advisers.
Proxy advisory firms offer services to assist investors and investment advisers in voting on matters presented to shareholders. Some firms also provide consulting services to help companies develop proposals for shareholder votes and improve their corporate governance ratings.
The SEC examined the role of proxy advisory firms in a 2010 concept release on the proxy voting system. Among other things, the release sought public comment on:
  • The services provided by proxy advisory firms.
  • Potential conflicts of interest and transparency in the proxy advisory industry.
These issues will be discussed at the roundtable.
For more on the concept release, see Legal Update, SEC Issues Concept Release Seeking Public Comment on US Proxy System.
Update: On November 22, 2013, the SEC published a notice of roundtable discussion specifying that the roundtable will take place at 9:30 a.m. EST on December 5 and that the SEC will accept comments on the issues addressed at the roundtable until January 10, 2014.
Update: On November 27, 2013, the SEC announced the agenda and panelists for the roundtable. Topics to be covered include:
  • The current use of proxy advisory services, including the factors that may have contributed to their use.
  • The purposes and effects of using proxy advisory services.
  • Competition in the marketplace for proxy advisory services.
  • Issues identified in the 2010 concept release, including potential conflicts of interest that may exist for proxy advisory firms and users of their services, and the transparency and accuracy of recommendations by proxy advisory firms.