As debate over the regulation of proxy advisors heats up on Capitol Hill, CII published a brief to refute many of the claims that lawmakers are relying on to muster support for their efforts to crack down on advisors. The six-page brief explains:

• how investors use proxy advisors;
• how much influence proxy advisors actually have over investors’ voting decisions;
• how often errors actually appear in proxy advisors’ reports;
• how proxy advisors manage any possible conflicts of interest;
• how more regulation would affect the market for proxy advisory services; and
• how proxy advisors approach transparency about their practices and methodologies.

“As our recent survey showed, many CII members rely on one or more proxy advisors to help them cast informed voting decisions but don’t follow their recommendations,” said CII Executive Director Bob McCormick. “Given the continued claims leveled at proxy advisors to justify more regulations, we thought it would be instructive to provide guidance on how investors actually use them and how proxy advisors actually operate,” he added.