• Staff sides with investor advocates on shareholder proposal for forced arbitration

    The SEC sided with investor and consumer advocate groups who wanted the commission to reject a shareholder effort to include a proposal that would require a company to have bylaws forcing defrauded investors into arbitration. But the commission sided with the investor protection groups on a narrower set of circumstances dealing with state laws in New Jersey, leaving a broader question unresolved about whether a public company can require shareholders to arbitrate claims against them under the federal securities laws.
  • Chairman Clayton emphasizes materiality of information in setting disclosure requirements

    SEC Chairman Jay Clayton reiterated his view that the commission’s disclosure requirements should focus on “the material information that a reasonable investor needs to make informed investment and voting decisions.” His views come as the agency’s investor advisory panel explores whether the SEC should require a standardized set of disclosures on environmental, social and governance (ESG) matters that business groups dismiss as non-material to a reasonable investor.
  • IAASB seeks comment on proposed strategic plan

    The International Auditing and Assurance Standards Board (IAASB) published a consultation paper seeking comment on its proposed strategic direction and work plan. The board said its proposed strategy puts a way forward that it believes meets the capital markets’ evolving needs.