STA Rebutes NYSE Proposal on Proxy Fee Increases

The Securities Transfer Association (STA) has commented on the broker fee increase proposal submitted by the NYSE PFAC committee and has disagreed on several points. With an 18-month effort by NYSE PFAC to review and update the broker proxy fee schedule, the STA has recommended that the fee proposal should be disapproved for several reasons:

  • The NYSE rule filing does not include an independent review of proxy costs, as recommended by the NYSE Proxy Working Group in 2006;
  • The NYSE rule filing does not include a thorough analysis of the costs and benefits of the proposed proxy fee changes, using the same degree of rigor as the SEC applies to its own rules;
  • The proposed NYSE processing and intermediary unit fees do not allocate fees equitably between large and small issuers;
  • The NYSE proxy fee proposals favor the interests of broker-dealers and discriminate against issuers; and
  • The structure and level of the proposed NYSE proxy fees place a burden on competition.
  • Paper and Postage Elimination Fees: These fees were intended to cover the printing of a Voting Instruction Form ("VIF") and enclosing it with an annual report, proxy statement, and return envelope in a poly wrapped package. If these basic processing functions are not performed, then these fees should not be charged for a suppressed account. Additionally, and for the same reasons, Broadridge should not be permitted to charge a Notice and Access fee for suppressed accounts.

In response Colonial Stock Transfer created a managed proxy service to help reduce the costs associated with a Proxy by 40-65%:

  • Dedicated Proxy Manager
  • NOBO/OBO Oversight and Management
  • Online Voting, Management and Tabulation
  • Printing & Delivering Materials

Colonial Stock Transfer has performed hundreds of managed proxies with the average customer experiencing a significant savings. Call 877-285-8605 to speak with a representative about Colonial's Shareholder Meeting Services.

Click here to view the full STA letter.

Related Articles: NYSE Proposal Endorses Proxy Fee Increase

Published: March 1, 2013

Author: Colonial Stock Transfer