Denmark’s AkademikerPension has sent an open letter to the US Securities and Exchange Commission (SEC), urging the regulator to reverse its decision to refrain from responding to most corporate requests to exclude shareholder proposals from proxy materials.

AkademikerPension noted that the SEC’s recent decision to refrain from responding to most no-action requests means companies will now determine for themselves whether to exclude shareholder proposals, rather than going through the usual SEC review process under Rule 14a-8.

The pension fund warned that this “changes the balance of power” between companies and investors, and weakens investor rights at a “decisive moment” for active ownership.

The SEC has cited a lack of resources following the US federal government shutdown as the reason for the change. However, AkademikerPension argued that financially material risks must be “governed consistently and transparently, regardless of shifting political climates or deregulatory ambitions”.

“Market structure, asset pricing and portfolio risk are all directly affected by the SEC’s regulatory priorities,” the pension fund wrote.

It said that “unpredictable” regulatory direction introduces volatility that is ultimately borne by savers and pensioners.

Akadmiker Pension has therefore urged the SEC to “maintain a regulatory environment in which material risks can be raised and discussed openly, in which key ownership rights are protected, and in which enforcement remains consistent and effective in addressing both specific violations and underlying governance weaknesses”.

The letter from the pension fund concluded: “A stable and predictable capital market requires that the voice of investors is strengthened rather than diminished in the mechanisms that grant long-term owners' genuine influence.

“Ensuring that Rule 14a-8 remains a reliable and accessible channel for investors is not merely a procedural matter; it is essential to safeguard market efficiency, resilience and long-term value creation.”

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