The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC) Vice President Tom Quaadman issued the following statement today regarding the U.S. Securities and Exchange Commission’s (SEC) guidance that encourages proxy advisory firms to disclose conflicts of interest:
“We are encouraged that the SEC has taken this important first step towards bringing the appropriate checks and balances to the proxy advisory industry. Of course, more remains to be done. When the Chamber released its Best Practices and Core Principles for Proxy Advice last year, we did so with the hope of starting a dialogue on these complicated issues. Through the leadership of SEC Chair Mary Jo White and Congressman Scott Garrett, that dialogue has started in a sincere and substantive manner. However, these are complicated issues and this dialogue must continue. We need to insure that proxy advice is developed transparently and with due process to insure that investors’ interests and capital formation, not special interests, are the driving force for advisory firms’ recommendations.”
Since its inception in 2007, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.