SEC Alert! SEC proposes (OPEN for comment) to continue collecting 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.
Source: https://public-inspection.federalregister.gov/2023-06173.pdf
Rule 206(4)-6
The title for the collection of information is “Rule 206(4)-6” under the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) (“Advisers Act”) and the collection has been approved under OMB Control No. 3235-0571. The Commission adopted rule 206(4)-6 (17 CFR 275.206(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.
Under the rule, an investment adviser that exercises voting authority over client securities is required to:
- Adopt and implement written policies and procedures that are reasonably designed to ensure that the adviser votes client securities in the best interest of clients, including procedures to address any material conflict that may arise between the interests of the adviser and the client
- Disclose to clients how they may obtain information from the adviser on how the adviser has voted with respect to their securities
- Describe to clients the adviser’s proxy voting policies and procedures and, on request, furnish a copy of the policies and procedures to the requesting client. The rule is designed to assure that advisers that vote proxies for their clients vote those proxies in their clients’ best interest and provide clients with information about how their proxies were voted.
Do you want to comment?
Consideration will be given to comments and suggestions submitted by:
You have 60 days from today
Written comments are invited on:
- Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility
- The accuracy of the Commission's estimate of the burden of the collection of information
- Ways to enhance the quality, utility, and clarity of the information collected
- Ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.
How to comment:
Written: David Bottom, Acting Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street, NE Washington, DC 20549
Email: [email protected] subject: [SEC File No. 270-513, OMB Control No. 3235-0571]
Burden (630,135 hours):
TLDRS
SEC proposes (OPEN for comment) to continue collecting 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, such as:
- Adopt and implement written policies and procedures that are reasonably designed to ensure that the adviser votes client securities in the best interest of clients, including procedures to address any material conflict that may arise between the interests of the adviser and the client
- Disclose to clients how they may obtain information from the adviser on how the adviser has voted with respect to their securities
- Describe to clients the adviser’s proxy voting policies and procedures and, on request, furnish a copy of the policies and procedures to the requesting client. The rule is designed to assure that advisers that vote proxies for their clients vote those proxies in their clients’ best interest and provide clients with information about how their proxies were voted.
