Gary Gensler has been chairman of the Securities and Exchange Commission for five months now, and in those five months he’s developed quite the to-do list. Incredibly, however, today’s was the first meeting at which he actually got to start ticking things off that list, and how did he choose to do it? Banning cryptocurrencies and payment for order flow? Re-empowering whistleblowers after their Trump-era emasculation? Putting SPACs out of their misery?
Nope: At his first policy meeting, Gensler decided to open proceedings by trying to embarrass hedge funds.
The U.S. Securities and Exchange Commission is taking up a long-delayed bid to force money managers to disclose whether they voted in support of shareholder proposals on executive pay…. 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.
In fairness to Gensler, this relatively trivial matter has been a long time in coming.
The regulator was required to write the proxy-vote disclosure rules more than a decade ago, but has not finished them following pushback from investment firms.
Hedge Fund Disclosures on CEO Pay Votes Get Renewed SEC Push [Bloomberg via Yahoo!]
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