Steil, Huizenga Lead Letter to SEC on Proxy Advisor Rule
WASHINGTON, DC – Congressman Bryan Steil (WI-01) and Congressman Bill Huizenga (MI-02) sent a letter to the Securities and Exchange Commission regarding proposed changes to the 2020 Proxy Advisor Rule and released the following statements.
"The 2020 Proxy Advisor Rule reforms adopted by the Trump Administration brought needed transparency and accountability to the proxy advisor industry," said Congressman Steil. "Unfortunately, the SEC now seems determined to abruptly dismantle key safeguards in the 2020 rules. It is important that proxy advisory firms can provide clients with accurate information, operate transparently, and are free from undisclosed conflicts of interest. The SEC's proposed changes will take us in the wrong direction."
"The manner in which the Securities and Exchange Commission (SEC) continues to release these rules is concerning," said Congressman Bill Huizenga. "As SEC Commissioner Peirce noted just last week, sloppy or rushed rulemaking introduces uncertainty for market participants. One of the worst things the SEC can do is create confusion to those they regulate with wild swings in policy. The SEC should be focused on providing clarity for both investors and businesses."
The letter reads, "We write to express our deep concerns regarding the Commission's recent action to propose amendments to the rules finalized in 2020 relating to proxy voting advice businesses. The Securities and Exchange Commission decision to reverse course on the Commission-passed 2020 Proxy Advisor Rule is misguided and is further tainted by the rushed manner in which is was pursued.
The 2020 Proxy Advisor Rule took important steps to correct flaws in the proxy advisory industry….. We urge the SEC to reverse course on its proposed amendments and to implement and enforce the 2020 rules relating to proxy voting advice to businesses."
Congressman Steil introduced the Corporate Governance Reform and Transparency Act, which addresses many of the principles the SEC included in their final rule in the 116th Congress. Steil has also previously led colleagues in providing feedback and support to the Commission during the public comment period.
To read the full text of the letter, click here.
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