This bill would restrict proxy advisory firms—companies that advise shareholders on how to vote on corporate matters—from offering services when they have financial conflicts of interest. Specifically, the law would prohibit proxy advisors from making voting recommendations if they also provide consulting services to companies, change their voting advice based on whether a company buys their services, provide advice on matters where they're simultaneously engaged with shareholders pushing for proposals, or are affiliated with organizations supporting shareholder proposals. The Securities and Exchange Commission would enforce these rules by investigating violations and imposing civil penalties against offending firms and individuals involved in the violations. The bill does not specify funding amounts or implementation timelines beyond establishing the Commission's authority to pursue enforcement actions.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.