SEC's 'Speed Bump' Is an Affront to Institutional Investors

SEC's 'Speed Bump' Is an Affront to Institutional Investors
(AP Photo/Steve Helber)

After significant opposition from institutional investors across the country, the SEC appears to be moving away from a key provision of a proposed rule that would have granted public companies a first look at independent proxy advice before it is delivered to the institutional investors for whom it is intended.

Following months of rulemaking tainted by efforts to flood the agency with fabricated comments, the misguided effort to tip the scales in favor of public company management has been revealed as little more than a 'solution' to a non-existent problem.

While this apparent change should be a welcome development for working Americans and the investment firms responsible for managing their retirement plans, the agency often vaunted as the “investors’ advocate” reportedly still intends to move forward with an approach that favors corporate managers and undermines the system through which institutional investors receive objective, independent analysis before voting on the key meeting proposals that affect savings for millions.

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