Good news for companies that questioned the influence of proxy advisory firms.

The Securities and Exchange Commission is considering guidance on how the federal securities laws should regulate the activities of proxy advisory firms, said Chairman Mary Schapiro in her remarks at the Transatlantic Corporate Governance Dialogue on Dec. 15.

She said the consideration was made based on many comments that have suggested that proxy advisory firms may interfere instead of enhancing communication between shareholders and companies. Businesses have also vented their frustrations over the influence the proxy advisory firms have and worry that there are neither accountability nor concern over the quality of the information they used when making their recommendations.

“When boards believe that a recommendation has been based on incorrect information, those recommendations can act as a barrier to boards' efforts to persuade investors to change their minds,” said Schapiro. There are also concerns that proxy firms' conflicts of interest may be insufficiently disclosed, and will prevent shareholders from considering possible conflicts when analyzing those recommendations.

“As a result of the comments we've gathered, the Commission is considering how to provide guidance on how the federal securities laws should regulate the activities of proxy advisory firms,” she said.

The Commission is also examining uncertainty on vote confirmation. Schapiro said currently investors are unable to receive confirmation that their votes have been cast and accurately counted. She said the SEC is considering methods to require participants in the voting process to share information with each other to allow vote confirmations.

Schapiro also confirmed that the SEC will begin a broad review of the beneficial ownership reporting rules next year. Issues under consideration include:

Shortening the 10-day initial filing requirement for Schedule 13D

Reporting change with respect to use of cash-settled equity swaps and other types of derivative instruments

Improvement on information presentation on Schedule 13D and 13G

“Our first step will likely be a concept release given the controversy surrounding some of the issues,” she said.