NAM Takes SEC to Court

The National Association of Manufacturers (NAM) Legal Center has taken action in federal court, arguing that the Securities and Exchange Commission (SEC) has unlawfully suspended a rule governing proxy advisory firms. These firms advise institutional investors (like retirement fund managers) on how to vote on the policies of public companies in which the funds invest, giving the firms significant power over public companies.

The NAM secured a victory in 2020 when the SEC finalized a rule increasing oversight of proxy advisory firms. Under the Biden administration, however, the SEC’s new leadership has announced it will not enforce the 2020 rule. 6/1/2022