Proxy firms that recommend to investors how to vote in company elections must disclose conflicts of interest that could be seen as influencing their advice, according to the Securities and Exchange Commission.
The SEC’s guidance, released on Monday, comes in response to critics such as the U.S. Chamber of Commerce who note that some proxy firms that counsel investors on voting matters including executive pay and the makeup of corporate boards also consult for those same companies. Institutional Shareholder Services Inc. is one such proxy adviser, Bloomberg says.
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