Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:ICI Sends Letter on Proxy Rules Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, December 06, 2002

ICI Sends Letter on Proxy Rules

by: Sean Hanna, Editor in Chief

The ICI today said in a letter on its Web site that it will support the SEC's proxy voting proposals if two changes are made to them.

The industry association said in a letter that if the changes become law "mutual fund shareholders will benefit from the highest, most rigorous proxy voting standards in the country." The ICI also proposed a new standard that would assign special proxy voting oversight responsibilities to independent fund directors. It explained that the requirement would add "another important protection."

"Together, these measures would reinforce an already effective system in which mutual funds have consistently fulfilled their responsibilities to shareholders. These new standards should also raise the bar for all other public and private institutional investors who may not be subject to this regulation but who vote millions of proxies on behalf of individuals."

The ICI does object to two elements of the SEC's initiative that it believes would harm fund shareholders. It argues that a requirement to file semi-annual reports on votes would "needlessly politicize mutual fund portfolio management." It also argues that the information is being sought mostly by special interest groups.

"They want proxy votes disclosed to further their social and political agendas, regardless of how much it hurts mutual fund shareholders. Special interest groups appear to view mutual funds as a prize to be captured as they single-mindedly pursue their narrow objectives," said the ICI.

It also believes that disclosure of the votes would weaken funds' ability to provide strong corporate governance by exposing their voting. It claims confidential voting improves corporate governance and promotes accountability.

"The SEC should strengthen confidential voting by expanding its reach instead of undermining it. This would be a singularly effective way to empower institutional investors and achieve the governance improvements the Commission is seeking. We pledge our strong support should the SEC choose to do so," read the letter. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use