Bloomberg Law
Sept. 29, 2022, 6:22 PMUpdated: Sept. 29, 2022, 8:33 PM

SEC Ordered to End Hold on Trump Proxy Firm Restrictions (1)

Andrew Ramonas
Andrew Ramonas
Corporate Disclosure Reporter

The SEC will need to reinstate a compliance date for Trump-era regulations that restricted proxy advisory firms assisting shareholders with votes at companies’ annual meetings, a federal judge has ruled.

The Securities and Exchange Commission violated the Administrative Procedure Act by failing to have a notice-and-comment period before it announced in June 2021 that it wouldn’t enforce the 2020 rules, Judge David Counts of the US District Court for the Western District of Texas said in an opinion issued Thursday.

The National Association of Manufacturers sued the SEC in October 2021 to enforce the Trump-era regulations, which targeted proxy firms ...