The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fundsters' Reliance on Proxy Advisors is Under Fire: Will the SEC Step In? Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, July 12, 2013

Fundsters' Reliance on Proxy Advisors is Under Fire: Will the SEC Step In?

News summary by MFWire's editors

At least one member of the Securities and Exchange Commission (SEC) wants to overhaul the proxy advisory industry that works with fundsters.

Sarah Lynch of Reuters reports that yesterday Republican commissioner Daniel Gallagher called on the regulatory agency to curtail mutual fund shops' and others' heavy reliance on proxy advisory shops like MSCI's Institutional Shareholder Services when casting corporate votes on behalf of investors.

"The last thing we should want is for investment advisers to adopt a mindset that leads to them blindly casting their votes in line with a proxy advisor's recommendations," Gallagher stated in a prepared speech in Seattle. "I believe that the Commission should fundamentally review the role and regulation of proxy advisory firms and explore possible reforms."

Galagher pointed to SEC rules adopted in 2003 and subsequent no-action letters prompted by proxy advisory shops.

The wire service does not mention where the other four commissioners stand on the issue. Yet it notes that Gallagher's push may nudge new chair Mary Jo White into examining the issue. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use