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Bad bonuses in SEC crosshairs ahead of vote on clawback rule

The clawback rule’s implementation has been delayed for years amid resistance from corporate executives

Public companies whose financial statements contain errors would be forced to recoup their executives’ bonuses under a rule the Securities and Exchange Commission is set to consider on 26 October.

The SEC’s five commissioners are set to vote on the rule in a meeting that starts at 10am ET. Also on the docket are a final rule that would require mutual funds to provide their shareholders with simpler disclosures, and a proposal to limit investment advisers’ ability to outsource certain functions to third-party service providers.

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