WASHINGTON, D.C. - Today the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC) released a new white paper, entitled Examining the SEC’s Proxy Advisor Rule, that examines the Securities and Exchange Commission’s (SEC’s) administrative process in finalizing their Proxy Advisor rule, and concludes that the rule is a concrete step in the right direction to address deficiencies in the proxy advisory system.
In addition, the Chamber filed an amicus brief in a recent lawsuit brought against the SEC, defending the SEC’s rulemaking and protect investors from proxy advisors’ lack of transparency and potential conflicts of interest.
“The SEC convincingly demonstrated the need for regulation given the potential for conflicts of interest and poor-quality governance advice in the proxy advisor industry. Improvements made under the SEC’s final rule will reorient shareholder proposals and director elections to ensure the long-term success of businesses and provide much needed returns for investors,” said U.S. Chamber Center for Capital Markets Competitiveness Executive Vice President Tom Quaadman.
Quaadman continued, “We have released our white paper and filed an amicus to continue defending the SEC’s final rule and most importantly protect investors, promote transparency, end conflicts of interest, and boost U.S. competitiveness. Our white paper demonstrates that proxy reforms pass legal muster under the Administrative Procedure Act.”
The white paper and amicus filing contend that the SEC convincingly demonstrates the need for regulation given the potential conflicts of interest and poor-quality governance advice in the proxy advisory industry. The SEC’s thoughtful changes between proposal and finalization of the rule further support the reasonableness of the rule.
The Examining the SEC’s Proxy Advisor Rule white paper was authored by Paul Rose, Robert J. Watkins/Procter & Gamble Professor of Law, The Ohio State University Moritz College of Law, and Christopher J. Walker, John W. Bricker Professor of Law, The Ohio State University Moritz College of Law. The paper can be found here.
The Chamber’s amicus brief can be found here.
