FINRA proposed amendments to FINRA Rule 2251 ("Processing and Forwarding of Proxy and Other Issuer-Related Materials"), a rule on reporting and fee requirements for the delivery by broker-dealers of proxy and other issuer-related materials.
The amendments would (i) allow certain registered investment companies to satisfy their shareholder report delivery obligations by making the reports available electronically on a website using a "notice and access" process (a one-page notice informing investors that proxy materials are available electronically, which is also known as an "E-Proxy"), and (ii) limit the maximum fees which its member broker-dealers could charge to issuers utilizing the process.
The proposal would also make conforming revisions to match the fee provisions set forth by the New York Stock Exchange.
Comments on the proposal must be submitted within 21 days of its publication in the Federal Register.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
