SEC Commissioner Hester Peirce’s Disingenuous Slant on ESG

SEC Commissioner Hester Pierce, who came to the Commission from the Koch-funded, ultra-anti-regulatory Mercatus Center, the same person who informed the Council of Institutional Investors that their members did not know what it was that investors needed, is now speaking out against ESG disclosures, in a speech to Brookings. What is especially infuriating about Pierce…

SEC Asset Management Advisory Committee Recommendations for ESG Disclosure

Recommendations Regarding Issuer Disclosure of Material ESG Matters: –  The AMAC recommends the SEC take steps to foster meaningful, consistent, and comparable disclosure of material environmental, social, and governance (ESG) matters by issuers. –  To foster meaningful, consistent, and comparable disclosure, the SEC should encourage issuers to adopt a framework for disclosing material ESG matters…

SEC Suspends Trump-Era Proxy Advisory Rule

From SEC Chair Gary Gensler [footnotes omitted, emphasis added]: In September 2019, the Commission issued an interpretation and guidance addressing the application of the proxy rules to proxy voting advice businesses. Last July, the Commission adopted amendments to Rules 14a-1(l), 14a-2(b), and 14a-9 concerning proxy voting advice. I am now directing the staff to consider…

SEC Comment Letter on ESG: Shareholder Commons

We were proud to be among the signers of this comment letter from Shareholder Commons, making essential points about a more wholistic approach to portfolio theory and the role of regulation. The letter is attached in full below. An excerpt [footnotes omitted]: Individual companies financially benefit by externalizing costs and depleting such common goods when…

SEC’s Regulatory Agenda Makes ESG and Shareholder Democracy Key Priorities

The SEC’s new Regulatory Agenda includes: Disclosure relating to climate risk, human capital, including workforce diversity and corporate board diversity, and cybersecurity risk Market structure modernization within equity markets, treasury markets, and other fixed income markets Transparency around stock buybacks, short sale disclosure, securities-based swaps ownership, and the stock loan market Investment fund rules, including…

SEC: Comment from Securities Lawyer Thomas Gorman

The SEC is considering additional restrictions on insider stock sales. We support these rules because it is too easy now for insiders to game the system. Even if sales are scheduled in advance, insiders control the timing of disclosures and other actions that can affect stock price. Thomas Gorman is a former SEC attorney and is…

Members of Congress Express Concern about the SEC’s Approach to Climate Change Disclosure

Some Members of Congress have written to SEC Chairman Gensler to remind him what the “materiality” standard is and conclude without reference to any data that the Commission may not be clear on it. We also caution the SEC against outsourcing its responsibilities to ostensibly “independent” third-party standard setters that have agendas outside the scope ofthe Federal securities laws and that do not recognize the standard ofmateriality that has served U.S. capital markets so well. Some of these organizations are funded or…