SEC IM Staff Issues Guidance on Proxy Voting Responsibilities of Investment Advisers

July 21, 2014

The U.S. Securities and Exchange Commission’s (SEC) Divisions of Investment Management (IM) and Corporate Finance (CF) released a staff legal bulletin (Bulletin) on June 30, 2014, covering various issues involved with proxy voting. In the Bulletin, the staff of the IM Division (IM Staff) provided guidance as to the responsibilities of investment advisers in voting client proxies and retaining proxy advisory firms, and the staff of the CF Division (CF Staff) expressed its views as to the requirements for two exemptions from the federal proxy rules that are often relied upon by proxy advisory firms.

Many U.S. asset managers that manage investment funds currently retain proxy advisory firms, and this Dechert OnPoint focuses on the IM Staff’s guidance to investment advisers.

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