Bill > HR4098

This bill, known as the "Stopping Proxy Advisor Racketeering Act," aims to regulate proxy advisory firms by prohibiting certain conflicts of interest and unethical practices in their proxy voting advice. Specifically, the bill makes it unlawful for proxy advisory firms to provide voting recommendations under several circumstances: when they offer consulting services to a registered company, when they modify voting recommendations based on a company's subscription to their services, when they provide advice during periods when they are simultaneously providing stewardship services to a shareholder proponent, and when they are members of organizations supporting shareholder-sponsored proposals related to their voting advice. The bill defines a proxy advisory firm as an entity that markets expertise in proxy voting advice and sells such advice for a fee. If the Securities and Exchange Commission (SEC) finds a proxy advisory firm in violation of these provisions, it can impose administrative civil penalties. The legislation seeks to enhance transparency and reduce potential conflicts of interest in the proxy advisory industry, which plays a significant role in influencing shareholder voting decisions in publicly traded companies.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/4098/all-info