SEC Web Push Faces Hurdles

Cox's tech crusade meets resistance from older shareholders, bureaucrats
By Jane Yager,  Newser Staff
Posted Nov 24, 2007 9:16 AM CST
Security Exchange Commission Chairman Christopher Cox discusses challenges and frontiers in securities regulation as he addresses the Rocky Mountain Securities Conference in Denver on Friday, May 11,...   (Associated Press)
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(Newser) – SEC Chairman Christopher Cox's campaign to make corporate information available to investors electronically sounds like a no-brainer, but it's beset with resistance on multiple fronts. That's because such proposals as online shareholder forums and making corporate data interactive—which would allow investors to sort and compare information—could give an advantage to investors comfortable with the internet and business technology.

The SEC has adopted some of Cox's ideas, but proposed shareholder forums, which the commission will vote on this week, face opposition from the AARP, lobbying on behalf of shareholders over 50, the Wall Street Journal reports. The effort to upgrade SEC rules brings two forces into conflict: Businesses would like to use the internet to reduce costs, while the SEC aims to ensure all investors access to information in a format they feel comfortable with.