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Bill > S4241


US S4241

INDEX Act INvestor Democracy is EXpected Act


summary

Introduced
05/18/2022
In Committee
05/18/2022
Crossed Over
Passed
Dead
01/03/2023

Introduced Session

117th Congress

Bill Summary

A BILL To amend the Investment Advisers Act of 1940 to require investment advisers for passively managed funds to ar- range for pass-through voting of proxies for certain secu- rities, and for other purposes.

AI Summary

This bill, the INvestor Democracy is EXpected (INDEX) Act, amends the Investment Advisers Act of 1940 to require investment advisers for passively managed funds to arrange for pass-through voting of proxies for certain securities. Specifically, if an investment adviser holds voting authority over more than 1% of a company's outstanding securities, they must vote those securities proportionately based on the voting instructions received from the fund's investors. The bill also allows investment advisers to vote uninstructed shares on routine matters and provides a safe harbor if they choose not to solicit voting instructions for non-routine matters. Additionally, the bill amends the Securities Exchange Act of 1934 to require brokers to provide voting instructions from their customers.

Committee Categories

Housing and Urban Affairs

Sponsors (14)

Last Action

Committee on Banking, Housing, and Urban Affairs. Hearings held. (on 06/14/2022)

bill text


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