SEC IM Director Shares Views On Proxy Voting

SEC Division of Investment Management Director Brian Daly recently delivered remarks on investment advisers voting client proxies. Key takeaways from Director Daly's speech:

• Investment advisers must act consistently with their fiduciary duties when voting proxies.
• Advisers are not required to vote all client proxies and may scope their fiduciary relationship accordingly.
• When deciding whether to vote proxies, consideration may be given to investment strategy.
• The SEC is signaling heightened scrutiny of the use of proxy advisors.
• Pass-through voting programs and AI-assisted proxy analysis present opportunities for advisers, subject to fiduciary duties.

The director of the SEC's Division of Investment Management ("IM"), Brian Daly recently delivered remarks to the New York City Bar Association on investment advisers voting client proxies.¹ Director Daly's remarks follow an earlier Executive Order addressing the role of proxy advisors,² as well as