D.C. Circuit’s Proxy Access Ruling Raises Importance of Economic Review, Panel Says

The recent decision by the U.S. Court of Appeals for the District of Columbia Circuit vacating the Securities and Exchange Commission’s proxy access regulation has elevated the importance of economic analyses in rulemaking to implement the financial reform statute, attorneys from Davis, Polk & Wardwell LLP said July 29.

The court faulted the SEC for failing to consider lower cost alternatives, , among other criticisms, noted Linda Chatman Thomsen, a partner in the firm’s Washington, D.C., office. Accordingly, commenters who seek to shape rulemaking under the Dodd-Frank Wall Street Reform and Consumer Protection Act should provide, at the proposal stage, ...