New Rules for Shareholder Proxy Advisory Firms
This act introduces new rules for firms that advise shareholders on how to vote in corporate matters. The goal is to prevent situations where these firms have conflicts of interest, which could influence their recommendations. This means citizens investing in stocks can expect more independent and fair advice regarding their investments.
Key points
Advisory firms cannot provide both consulting services and proxy voting advice to avoid conflicts of interest.
It is prohibited to change voting recommendations based on whether the firm receives other fees from the company.
Financial penalties will be imposed on firms that violate these new rules.
Introduced
Citizen Poll