Brooklyn Journal of Corporate, Financial & Commercial Law

First Page



Proxy voting advice businesses have historically been guided by disjointed rules and regulations based on their relationship to other entities, but under a 2020 rulemaking they were officially brought under the auspices of the Securities and Exchange Commission. However, after a change in presidential administrations, the Securities and Exchange Commission in 2021 issued a proposed amendment which, if adopted, would rescind some of the more contentious elements of the initial 2020 rulemaking. This Note considers how, even if the 2021 proposed amendments are adopted, the Securities and Exchange Commission can simultaneously regulate and protect proxy voting advice businesses through the creation of an advisory review board within the Securities and Exchange Commission’s Division of Corporation Finance. This board would serve to protect the independent source of information which specialty voting groups have come to rely upon, while also promoting the Securities and Exchange Commission’s goals of transparency and accuracy.