The Securities and Exchange Commission (SEC) is proposing Form N-PX amendments addressing information mutual funds, exchange-traded funds, and other funds report regarding proxy votes.
“This proposal will make it easier and more efficient for investors to get crucial information about proxy votes from funds,” SEC Chair Gary Gensler said. “I am pleased to support the staff’s recommendations and look forward to putting them out to public comment.”
The proposed guidance would require funds to connect the description of each voting matter to the issuer’s form of proxy while categorizing each matter by type to aid investors with identifying votes of interest and comparing voting records, per authorities.
Additionally, the proposed revisions would prescribe how funds organize reports and require implementation of a structured data language to ease filings analysis.
Officials indicated for the past 18 years funds have been required to file Form N-PX reports disclosing votes on proxy proposals related to investments, but investors may face difficulties analyzing the reports — citing an example in which funds may report votes in an inconsistent manner or in a format that is not machine readable.
According to the SEC, the proposal will be published on SEC.gov and in the Federal Register, with the public comment period remaining open for 60 days after publication in the Federal Register.