ASA: SEC Sides With Retail Investors Over Harmful Proxy Advisory Firms
FOR IMMEDIATE RELEASE
Contact: Adam Rice (202) 621-1823
September 13, 2018
Commission withdraws Egan-Jones and ISS No-action letters
WASHINGTON – The American Securities Association (ASA) today applauded the leadership of the Securities and Exchange Commission (SEC) for releasing a public statement regarding staff proxy advisory letters and withdrawing the 2004 Egan-Jones Proxy Services and Institutional Shareholder Services, Inc. (ISS) No-action letters. The ASA called today’s statement a positive development to better protect the interests of America’s retail investors and promote public trust and confidence in our markets.
“The ASA applauds Chairman Clayton and the SEC for acting to put the interests of America’s retail investors before the often politically-motivated interests of the harmful proxy advisory mega-firms,” said ASA CEO Christopher Iacovella. “Today’s action will help investors better grow and protect their wealth as funds and institutions can no longer quickly turn to proxy advisors without conducting the necessary due diligence their fiduciary duty requires. We look forward to continuing to work with the SEC to modernize the proxy advisory process and to ensure Main Street investors have a seat at the table.”
The ASA has been at the forefront of highlighting how proxy advisory firms are harming America’s retail investors. In a recent Morning Consult Op-Ed, ASA CEO Iacovella called on the SEC to withdraw the Egan-Jones and ISS letters and promote public trust and confidence in U.S. capital markets.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.