SEC Tells Fifth Circuit Proxy Firm Rules Strike Right Balance

A federal judge in Texas was right to back the SEC in easing Trump-era proxy advisory firm regulations, the agency told the US Court of Appeals for the Fifth Circuit on Wednesday.

The Securities and Exchange Commission is contesting a National Association of Manufacturers appeal of the judge’s ruling that upheld revised rules for firms that advise shareholders voting at companies’ annual meetings. The SEC urged the Fifth Circuit to affirm the judge’s decision in a brief, its first formal response to the appeal.

The SEC sought to appropriately regulate proxy firms, while not negatively affecting the cost, timeliness ...