The Securities and Exchange Commission issued a proposal requiring registered investment advisers to disclose proxy voting practices in their ADV forms.
The SEC proposed the new disclosure requirement so that clients will be fully informed about who is responsible for voting their proxies and how their interests in proxy voting decisions are protected.
Advisers would have to state whether they vote proxies, and those that do would have to disclose their voting policies, practices and procedures.
The rule would not require advisers to disclose how they vote on proxy issues, but it would require the adviser to disclose whether clients can find out how it voted their securities on a given issue.
The comment period ends June 13.