In Q&A with The Hedge Fund Law Report, Asset Management Partner Paulita Pike Discusses SEC Proxy Voting Guidance

Asset management partner Paulita Pike (Chicago) is featured in a Q&A published by The Hedge Fund Law Report on Oct. 24. The piece examines the impact of the SEC’s recent guidance on investment adviser proxy voting responsibilities.

Regarding the adoption of the guidance and its impact on an adviser’s responsibility to vote proxies on behalf of clients, Ms. Pike states, “the solicitor for the SEC’s Office of General Counsel was asked to provide his views on the subject, and he noted that it only provides interpretative guidance and does not constitute new substantive rulemaking. Commissioner Lee, however, pointed to the fact that, when such detailed guidance is issued, an investment adviser ignores it at its peril. Thus, the guidance will likely lead to changes and become embedded in policies, procedures and practices.

Whether the guidance explicitly creates new responsibilities or not is beside the point. It will influence adviser behavior.”