McHenry Statement on Updated SEC Guidance on Shareholder Proposals Regarding Social Issues

Cmte Financial Services (R)
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McHenry Statement on Updated SEC Guidance on Shareholder Proposals Regarding Social Issues

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), released the following statement, which echoes the concerns expressed by Republican Commissioners Hester Peirce and Elad Roisman, regarding the guidance issued today by the Securities and Exchange Commission (SEC) regarding shareholder proposals:

“This is yet another example of the dangerous mission creep at the SEC under Chairman Gensler’s leadership,” said Republican Leader McHenry. “‘Social policy significance’ is not a relevant consideration under federal securities law and SEC staff should not be given more discretion to determine how it applies to shareholder proposals. Additionally, as Commissioners Peirce and Roisman highlight, it is unclear what problem this guidance is intended to address. It appears Chair Gensler is more focused on bolstering his standing with left-wing activists than the core mission of the SEC.”