SEC Proposes Enhancing Reporting of Proxy Votes by Registered Management Investment Companies

The SEC has issued a proposed rule, Enhanced Reporting of Proxy Votes by Registered Management Investment Companies; Reporting of Executive Compensation Votes by Institutional Investment Managers. The proposed rule would amend Form N-PX under the Investment Company Act of 1940, which requires funds to report publicly their proxy voting records annually. Specifically, the proposed amendments would “enhance the information mutual funds, exchange-traded funds, and certain other funds report about their proxy votes.” In addition, the proposal would “require institutional investment managers to disclose how they voted on executive compensation, or so-called ‘say-on-pay’ matters.”

For more information, see the press release as well as statements by SEC Chairman Gary Gensler and Commissioners Caroline A. Crenshaw, Allison H. Lee, Hester M. Peirce, and Elad L. Roisman on the SEC’s Web site.