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SEC Proposal Relates to Proxy Voting by Mutual Funds, Investment Advisers
Washington, DC, September 24, 2002 - Amendments recently proposed by the SEC would require registered management investment companies to disclose the policies and procedures that they use to determine how to vote proxies relating to portfolio securities, and to file with the SEC and make available to their shareholders the specific proxy votes that they cast. The proposals would only apply to registered management investment companies, but the SEC seeks comment on whether the proposed disclosure requirements should extend to UITs.
The SEC also has proposed a new rule and rule amendments under the Investment Advisers Act of 1940 to require registered investment advisers to adopt and implement written policies and procedures reasonably designed to ensure that proxies are voted in the best interests of their clients, disclose to clients information about the advisers’ proxy voting policies procedures, disclose to clients how they may obtain information on how the adviser voted their proxies, and retain records relating to voting proxies on client securities. Comments on the proposals are due to the SEC by December 6, 2002.