Ed Batts, Global Co-Head of Orrick's M&A and Private Equity group, recently spoke with The Wall Street Journal regarding a proposed bill to regulate proxy advisory firms. If passed, the bill would require proxy advisory firms to register with the SEC, disclose potential conflicts of interests and allow issuers to review their recommendations, among other things. Many have criticized the bill in its current form for regulatory overreach.

According to Ed, "This is pushing the envelope on regulating the free enterprise market," adding, "Proxy advisors aren't taking advantage of the little guy, aren't manipulating the market and...are getting paid to [provide advice]."

Ed continued, "In many ways, this is a government-created market, and the fundamental question is, how much do you regulate the demand for the services created by the government? This is a classic dichotomy, to some degree."

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