A request for extension of the previously approved collection of information for Rule 206(4)-6, the proxy voting rule, to address an investment adviser’s fiduciary obligation to clients who have given the adviser authority to vote their securities.
Wut Mean?:
- The SEC has submitted a request to the Office of Management and Budget (OMB) to extend a previously approved information collection titled “Rule 206(4)-6” under the Investment Advisers Act.
This proxy rule is about investment advisers who have the authority to vote on their client's securities. The rule aims to ensure:
- Advisers vote in the best interest of their clients.
- Advisers have clear policies and procedures about voting, especially if there's a conflict of interest.
- Clients can know how their securities were voted by their advisers and can access the adviser’s proxy voting policies upon request.
- The collection of this information is mandatory, and the responses are not confidential.
An estimated 14,003 investment advisers are subject to this rule.
- Annually, these advisers spend about 10 hours each documenting their proxy voting procedures, totaling 140,030 hours.
- Additionally, advisers spend time providing policies to clients upon request, resulting in an additional 490,105 hours.
- The total annual time investment advisers spend on this rule is 630,135 hours.
- Records related to this rule must be kept for five years, with the first two years being easily accessible at the adviser's office.
How to comment:
- Comments due by September 2, 2023
- Email your comments to both:
- Alternatively, you can mail your comments to: David Bottom, Director/Chief Information Officer, SEC, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549.
TLDRS:
- A request for extension of the previously approved collection of information for Rule 206(4)-6, the proxy voting rule, to address an investment adviser’s fiduciary obligation to clients who have given the adviser authority to vote their securities.
This proxy rule is about investment advisers who have the authority to vote on their client's securities. The rule aims to ensure:
- Advisers vote in the best interest of their clients.
- Advisers have clear policies and procedures about voting, especially if there's a conflict of interest.
- Clients can know how their securities were voted by their advisers and can access the adviser’s proxy voting policies upon request.
- Comments due by September 2, 2023
- Email your comments to both:
