Bill > HR4589

This bill amends the Securities Exchange Act of 1934 to require the registration of proxy advisory firms with the Securities and Exchange Commission (SEC). The key provisions are: 1. Proxy advisory firms must register with the SEC before providing proxy voting advice, research, analysis, ratings, or recommendations to clients. 2. The registration process requires firms to provide information about their procedures, methodologies, conflicts of interest, and qualifications of staff. 3. The SEC can censure, deny, or suspend the registration of a firm if it finds this necessary for investor protection and the public interest. 4. Registered firms must establish policies and procedures to publicly disclose and manage conflicts of interest, and ensure the reliability and accuracy of their proxy advice. 5. Firms are prohibited from engaging in unfair, coercive, or abusive acts or practices related to their proxy advisory services. 6. Registered firms must file annual reports disclosing information about their proxy recommendations, analysis, and compliance. The bill aims to increase transparency and accountability in the proxy advisory industry to protect the interests of shareholders whose shares are voted based on the firms' recommendations.

Business and Industry

https://www.congress.gov/bill/118th-congress/house-bill/4589/all-info