The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

US SEC Asking for Feedback on Proxy Voting Proposals Including Data Tagging

The US Securities and Exchange Commission has just opened a 90 public comment period for consideration of its proposals to modernise the proxy voting system in the country by increasing electronic messaging and XBRL tagging.

Last year, SEC chairman Mary Schapiro launched a comprehensive review of the US proxy system in order to determine a more transparent, accurate and efficient method of registering shareholder votes during corporate actions events. “To result in effective governance, the transmission of this communication between investors and public companies must be timely, accurate, unbiased and fair,” said Schapiro this week.

To this end, the concept release requests comments from the public and the industry about the current state of play with regards to: the accuracy, transparency and efficiency of the voting process; communications and shareholder participation; and the relationship between voting power and economic interest.

Particular areas of concern for the regulator include the over-voting and under-voting of shares, methods of vote confirmation, issuer communication methods, proxy voting by institutional securities lenders and the role of proxy advisory firms. The SEC has also pitched the idea of data tagging proxy related data in order to facilitate the communication of this information to end investors in as efficient a manner as possible.

The introduction of new data tagging requirements would evidently have a significant impact on those acting as third party administrators within the corporate actions sphere.

The full list of items under consideration is available to view here.

Related content

WEBINAR

Recorded Webinar: Best practice approaches for corporate actions automation

Demand for timely and accurate corporate actions data is growing as volumes and complexity rise, and financial institutions acknowledge the increasingly costly gap between accurate corporate actions processing in real, or near-real, time and faulty processing caused by poor data and resulting in missed opportunities to optimise revenue. While many firms currently process parts of...

BLOG

State Street Alpha Expands Index and Benchmark Services Through Partnership with RIMES

State Street’s recent addition of a strategic partnership with RIMES will help clients meet increasingly complex index requirements and provide a solution that aggregates indexes and benchmarks across multiple providers. The partnership, which is with State Street Alpha, an integrated front-to-back office platform that combines Charles River Development (CRD), middle-office processing, data and back-office services,...

EVENT

Data Management Summit USA Virtual (Redirected)

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Regulatory Data Handbook 2021/2022 – Ninth Edition

Welcome to the ninth edition of A-Team Group’s Regulatory Data Handbook, a publication dedicated to helping you gain a full understanding of regulations related to your organisation from the details of requirements to best practice implementation. This edition of the handbook includes a focus on regulations being rolled out to bring order and standardisation to...