Congress Can Help Retirement Savers By Reforming Proxy Process
The conflict-ridden proxy advisory process should be reformed in a way that recognizes the rights of Main Street investors who are saving for retirement and preparing for their financial future.
WASHINGTON – The American Securities Association (ASA) today applauded the Senate Banking Committee for its work to examine the proxy advisory process and called on Congress to adopt needed reforms to empower Main Street investors and retirement savers.
“The conflict-ridden proxy advisory process should be reformed in a way that recognizes the rights of Main Street investors who are saving for retirement and preparing for their financial future,” said ASA CEO Chris Iacovella. “We look forward to working with the Senate Banking Committee, Congress, and the SEC to bring much-needed modernization, accountability, and transparency to the proxy advisory process.”
Last month, ASA called on the Securities and Exchange Commission to reform the proxy process by, at a minimum:
Subjecting the voting reports proxy advisory firms produce to the anti-fraud provisions of the proxy solicitation rules;
Exploring whether these firms should be registered as investment advisors subjecting the accuracy of the facts in their voting recommendations to increased scrutiny;
Prohibiting proxy advisors from offering rating and consulting services to issuers on any matter that they are also being paid by an investor to provide a voting recommendation on (there is no way to manage this conflict); and
Updating the resubmission thresholds for shareholder proposals that lose by wide margins.
ASA CEO Iacovella also recently penned an op-ed in The Hill urging fund managers to stop playing politics with the American people’s retirement savings. To read the full op-ed, click here.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.