Outline for Broker Functions within Proxy

Summary

SIFMA submitted a letter to NYSE on May 30, 2012, that outlined the broker functions within Proxy and created a diagram of the efforts. 

Excerpt

This letter responds to some of the alternative ideas for broker cost reimbursement that members of the Proxy Fee Advisory Committee outlined in your meeting with SIFMA on January 20, 2012, our initial review of the Committee’s Report issued May 16, 2012, as well as to your request for data from our members relating to the costs of proxy processing. We support the Committee’s goals as described in that meeting – to encourage the continued elimination of paper mailings, enhance transparency in the proxy fee structure, and establish a coordinated process of reviewing fee reimbursements going forward in a manner that is aligned with the work involved. As you are aware, we have supported the Committee in the past, such as by providing a flow chart entitled “Broker-Dealer Functions Supporting Proxy Distributions,” which describes the numerous proxy-related services firms provide in-house. A copy of the flow chart is attached to this letter (Appendix 1; Further detail on these services is provided in Appendix 2).

In further support of the Committee’s goals, and in response to your more recent request, we first provide some feedback on the proposals that you outlined to us in January of this year, and then address your request for cost information. After we have reviewed the Committee’s Report in more detail, we expect to have further comment.