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Proposed SEC Rule Could Create Social Media Headache

October 31, 2021
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RIA consultants

 

A recently proposed rule would make funds’ proxy-voting records more accessible to retail investors — which could pose problems for fund shops, compliance professionals say. Last month, the SEC proposed a rule that would standardize the information that funds must disclose about the proxy proposals they vote.

James Chekos, Director from Foreside’s Fund Officer Team, shared that in the end, the compliance costs firms are spending could be worth the effort since the proposed rule would make the complex and often inconsistent proxy form (Form N-PX) easier to navigate.

“Currently, funds can use different language than issuers when describing proposals in their Form NP-Xs, which can confuse investors.”

Read the full article from Ignites here, and gain additional insight into what other compliance professionals and industry experts are sharing on this topic and how it can provide more transparency for retail investors.

 

Foreside also recently published a blog post on this topic which you can access here