The Securities and Exchange Commission failed to meet its burden of demonstrating that the new proxy vote disclosure rule meets the standards of the Paperwork Reduction Act, the Investment Company Institute charges.
This is the last-ditch effort that the ICI is making to stall the hotly contested proxy rule, in a letter to the Office of Management and Budget Dow Jones reports. Craig Tyle, general counsel for the ICI, charges further in his letter that "the Commission has not demonstrated that the disclosure of fund proxy voting records is necessary for the Commission to protect investors," according to Dow Jones.
The ICI was expected to issue the letter, but industry insiders dont expect the OMB to try and usurp the powers of the SEC, Mutual Fund Market News reports in this weeks issue. It is possible the OMB will try and handle this unprecedented matter by recommending that the SEC revisit the issue in 18 months. The ICI is reportedly asking the SEC to withdraw the pending regulation until a thorough cost-benefit analysis can be completed..