Bryan Steil, Wisconsin’s 1st Congressional District, says the SEC does not look at legality even if a proposal is illegal.
The Congressman says he asked Proxy Advisors whether they look at legality or not to which they responded was the SEC’s role to look into legality.
Proxy advisors consult to investors about how to vote on the range of matters that require shareholder approval at the public corporations in an investor portfolio, but they do not look at the legality of proposals brought forward.
The SEC hesitantly admitted in a hearing that they do not look at legality, which poses a huge threat to investors facing serious problems within a company and the markets.
There was a case where shareholders went to the SEC because a company’s shareholder proposal would discriminate against pricing and race.
The SEC then proceeded to move forward without looking at the legality which then the Proxy Advisors reckoned favor since it’s the SEC’s job to approve or reject such proposals.
“You’re now telling us that you don’t review whether or not an action is legal, and so what we have is a complete lack of accountability.
And then Chairman Gensler goes and guts Chairman Clayton’s proxy advisor rules so that the Proxy Advisors aren’t on the hook either. No one is on the hook.
And then Americans are wondering why their retirement savings are being weaponized to advance a woke liberal agenda. Well, here it is.
Anyone can submit a proposal, that proposal can be illegal. The SEC doesn’t care, the Proxy Advisors don’t care,” said Congressman Steil.
“You have board rooms pulling their hair out saying we should be focusing on growing our business, growing jobs, but instead we can’t because the SEC is asleep at the switch.
People should be darned frustrated with what’s going on and the lack of accountability in the SEC under Chairman Gensler,” he continued.
A New Bill is Being Introduced to Fire Gary Gensler
A new bill is being introduced to fire SEC Chairman Gary Gensler.
Rep. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn., introduced the SEC Stabilization Act that would restructure the SEC and remove Chairman Gary Gensler from his post, per Fox.
The GOP lawmakers point to what they say is Gensler’s “long series of abuses that have been permitted under the current SEC structure.”
“U.S. capital markets must be protected from a tyrannical Chairman, including the current one,” Davidson said.
“That’s why I’m introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come,” he continued.
“It’s time for real reform and to fire Gary Gensler as Chair of the SEC.”
“American investors and industry deserve clear and consistent oversight, not political gamesmanship,” Emmer said in the release.
“The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless Chair.”
“Thank you, Representative Davidson, for leading this important effort to restore sanity at the SEC,” Emmer added.
Davidson’s and Emmer’s bill would remove Gensler from his position leading the SEC and restructure the commission to redistribute power from the chair to other commissioners, add a sixth commissioner to the body, and create an executive director position to oversee day-to-day operations.
Read: U.S. Supreme Court to Decide New Limit on SEC Power
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