On September 29, 2021, the SEC’s new Chairman, Gary Gensler held an open meeting discussing proposed amendments to Form N-PX. These amendments would enhance the information that investment companies report about their proxy votes.
To build on this, the proposed rule requires managers to report their votes on executive compensation matters to investors on Form N-PX. The other part of the proposal aims to bring more consistency, transparency, and usability for the Form N-PX. This is an effort to allow investors to more easily understand the proxy voting information that is reported.
WHAT DOES THIS MEAN FOR ME?
The SEC’s regulatory agenda is stacked with developing regulations that, once passed, will have a lasting impact on your firm’s operations and compliance program. If your firm is voting proxies for a fund, this may affect your filings going forward. The concerns may include the amount of information required to be disclosed as well as the process for filing itself. Your firm should stay up to date on proposed rules, contribute to public comments as you see fit, and prepare to adopt new regulations when required.