The US Securities and Exchange Commission (SEC) is revamping the nominations process for an independent advisory committee which previously broke ranks with the regulator by supporting standardised ESG corporate disclosures and proxy advisors.
The move is opposed by Commissioner Allison Herren Lee, one of two sitting Democrats on the five-strong Commission, who cautioned that the new procedure would exclude candidates with expertise in “ESG investing, climate change expertise, proxy, shareholder rights, or even corporate governance broadly”.
Under the new procedure, the SEC’s “career staff” will lead the process of nominating candidates to the regulator’s Investment Advisory Committee (IAC). To guide the process, the Commission has created 23 functional categories describing potential candidates which include retail investors, angel investors, institutional investors, and investor education professionals.
However, Commissioner Lee said tha…