Bill > S2700

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, the bill requires investment advisers managing passive funds with more than 1% voting authority in a company to vote the fund's shares in proportion to the voting instructions received from the fund's shareholders or economic interest holders. The bill also prohibits reimbursement of expenses related to these obligations and includes exceptions for routine matters and situations where the adviser does not receive voting instructions. Additionally, the bill requires investment advisers to provide shareholders with proxy materials and a form to submit voting instructions.