NYSE Proposes To Update Proxy Distribution Fees

At the end of August, the New York Stock Exchange submitted rule proposals to the Securities and Exchange Commission to update the way brokers are reimbursed by issuers when they distribute proxy materials. The new proposals would adjust reimbursement rates, and also fundamentally change the manner in which some rates are applied. While the exchange has temporarily withdrawn the proposals, it is expected to re-submit them in the near future, possibly with some adjustments, but largely in the same format.  

Under SEC rules, brokers are required to forward proxy materials to an issuer's shareholders, but are entitled to be reimbursed for the related costs. The SEC defers to the NYSE in setting applicable reimbursement rates. The current rule proposals focus on those reimbursement rates.