The SEC proposed the regulation, which would apply to hedge funds and pensions with more than $100 million in stocks, on Wednesday at Chair Gary Gensler’s first policy meeting since taking the helm of the agency earlier this year. The regulator was required to write the proxy-vote disclosure rules more than a decade ago, but has not finished them following pushbackfrom investment firms.
The disclosure rule is just one of dozens of items on Gensler’s to-do list. He’s laid out an ambitious agenda, calling for new regulations on everything from how stocks trade to clamping down on the once red-hot SPAC market. Last week, he said at an industry conference that finishing other post-crisis regulations related to executive compensation
The renewed SEC push on fund disclosures is likely to please Democratic lawmakers who have pressed the regulator for years to finish the so-called say-on-pay requirements, part of the 2010 Dodd-Frank Act. The agency’s new plan comes more than a decade after it
The agency’s commissioners voted 4-1 to propose the new regulation and will seek feedback for 60 days.
The new regulation would also make changes to forms that investment firms file with the agency regarding their proxy votes. Some of the alterations under consideration include standardizing how proxy proposals are described and categorized, as well as requiring funds to disclose when they don’t vote in proxies because their shares are on loan, according to the SEC.
(Updates with agency vote starting in second paragraph.)
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