What is the most appropriate action regarding a proxy voting policy?

• A. Vote proxies automatically
• B. Disclose policy to clients
• C. Abstain from proxy voting
• D. Vote against management

Answer: (B)

Disclosing the proxy voting policy to clients is the appropriate action because it ensures transparency about how proxies will be handled, who makes the voting decisions, and how conflicts of interest are managed. When clients know the firm’s approach, they can understand and consent to it or provide specific voting instructions aligned with their objectives. Without this disclosure, clients may be unaware of how their votes are cast, which can raise fiduciary concerns and potential conflicts. Voting automatically, abstaining outright, or consistently voting against management without client input would undermine client control and could misalign with their preferences or needs, making disclosure the responsible, proper step.