SEC’s Daly Renews Call for Engagement on Advisers Voting Proxies

Highlights

In a public appearance this week, Brian Daly, Director of the SEC’s Division of Investment Management, renewed calls for investment advisers to engage with the SEC staff on proxy voting practices.
Director Daly’s remarks called back to his January speech on the topic.¹
That speech, which Dechert covered in an earlier Newsflash, reviewed the SEC’s recent steps focused on proxy voting and explained that President Trump’s executive order on proxy advisors represented a “seismic shift.”²
The speech also discussed circumstances under which advisers to index funds and systematic strategies may determine not to vote client proxies, noting that, “[n]ot voting makes sense in many situations.”
In his remarks this week, Director Daly reiterated that this remains an important topic and encouraged managers to both assess their practices and engage with the SEC staff, as the staff is actively focusing on policy in this area.