SEC to prohibit brokers from voting proxies

The Securities and Exchange Commission plans to eliminate an New York Stock Exchange rule that allows brokerage firms to vote the proxies of their investor clients, The Wall Street Journal reported today.
APR 24, 2009
The Securities and Exchange Commission plans to eliminate an New York Stock Exchange rule that allows brokerage firms to vote the proxies of their investor clients, The Wall Street Journal reported today. Shareholder activists have long pushed to end the practice of broker voting, which occurs when clients don't cast their own votes for corporate directors, because brokerage firms typically vote the way management suggests. Under the current rule, brokers can vote client proxies on “routine” votes, which include director elections that are not contested. Few such elections are contested, according to the SEC. The controversial proposal to end broker voting has been amended several times since it was introduced in late 2006. The rule change would be effective for votes conducted at shareholder meetings held after Dec. 31, according to the proposal.

Latest News

Allworth deepens tax-advisory push with $1.1B Sachetta acquisition
Allworth deepens tax-advisory push with $1.1B Sachetta acquisition

The PE-backed RIA makes its first major move since bringing in a new capital partner, adding a Massachusetts advisory firm alongside a second East Coast RIA

Hightower Signature Wealth grows by $2.5 billion with Stearns deal
Hightower Signature Wealth grows by $2.5 billion with Stearns deal

Stearns Financial Group's addition brings 30 advisors and three decades of North Carolina planning experience to the platform.

Edward Jones backs senior protection rules after $3 million account freeze
Edward Jones backs senior protection rules after $3 million account freeze

An 86-year-old from Dallas tried to withdraw funds from his account, but Edward Jones invoked a FINRA-backed temporary lockout before he eventually left for Merrill Lynch.

iTP Partners launches $3.5 billion RIA on Cetera's Blueprint
iTP Partners launches $3.5 billion RIA on Cetera's Blueprint

The veteran-led advisory firm moved nearly 50 advisors from Osaic to Cetera this week, launching a new equity-ownership RIA with two key footprints in the East Coast.

Congress can help long-term mutual fund investors keep more of their money working
Congress can help long-term mutual fund investors keep more of their money working

If passed into law, the GROWTH Act would address a question of fairness for conscientious savers doing exactly what wealth management experts advise them to do.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income