SEC Issues Guidance on Investment Advisers’ Use of Proxy Firms and Application of Proxy Rules to Voting Recommendations; Proposes to Narrow Certain Exemptions to Proxy Rules—Part 2  

August 01, 2020
| The Investment Lawyer

In August 2019 the Securities and Exchange Commission (SEC) voted to issue two guidance statements in connection with its review of the role of proxy advisory firms in the proxy process: (1) the IA Release, which primarily interprets the Investment Advisers Act of 1940; and (2) the Exchange Act Release, which interprets the proxy provisions of the Securities Exchange act of 1934. Part 1 of this article, which appeared in the July issue of The Investment Lawyer, reviewed certain background law, guidance, and policy concerns regarding the use of proxy advisory firms. This final Part 2 continues the review, and discusses potential legal and practical consequences of the two Releases.

Read "SEC Issues Guidance on Investment Advisers’ Use of Proxy Firms and Application of Proxy Rules to Voting Recommendations; Proposes to Narrow Certain Exemptions to Proxy Rules—Part 2 ."

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