Proxy voting interpretation: Investment advisers may have to don shareholder activism hat under rules.(News)

Pensions & Investments, May, 2003

Byline: Barry B. Burr Investment advisers likely will have to become shareholder activists, based on an interpretation of SEC rules on proxy voting. "Yes, there may be circumstances when I believe an investment adviser may have to become a shareholder activist,'' said Robert Plaze, associate director, division of investment management, Securities and Exchange Commission.

Although he stressed that the new rules "are about proxy voting, not shareholder activism,'' Mr. Plaze added, "Advisers will have to look at the cost/benefit analysis. Looking at that analysis, there are certain times when there will be an obligation for a shareholder to take a shareholder activist role.'' At issue is a footnote in SEC's proxy voting rules, stating, "An adviser's...

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