In The News

Division of Corporation Finance Will Roll Out New No-Action Letter Procedures This Month

Jim Hamilton’s World of Securities Regulation

07 Nov 2019

In an article published by Jim Hamilton’s World of Securities Regulation, Marty Dunn discussed the Division of Corporate Finance’s new procedures for no-action requests for the 2020 proxy season.

Marty said that a September announcement of the new approach just reiterated the same three options that have always existed, noting that if the staff decides not to state a view, it simply means that it is not getting involved and the parties are free to litigate the matter. He said that he hopes that declining to state a view does not become the norm this proxy season.

Marty also said that he thinks oral advice makes sense from a time-management perspective, citing instances in which proponents submit a lot of letters on an issue, many of which do not advance the matter. “It can take up a lot of the staff’s time to maintain those files,” he noted, adding that oral advice would eliminate this.



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