SEC Proposes Amendments To Proxy Rules Relating To Proxy Voting Advice

On November 5, 2019, the Securities and Exchange Commission proposed amendments to the proxy rules relating to proxy voting advice. In its press release, the SEC noted that the proposal aims to “enhance the accuracy and transparency of the information that proxy voting advice businesses provide to investors and others who vote on investors’ behalf, and thereby facilitate their ability to make informed voting decisions.” The proposed amendments:

• codify the SEC’s interpretation that proxy voting advice generally constitutes a “solicitation;”
• condition the availability of exemptions to proxy voting advice from the information and filing requirements of the proxy rules upon compliance with additional disclosure and procedural requirements; and